Group7 - Mixed Development - Remr21 - 22

FACULTY OF BUILT ENVIRONMENT
DEPARTMENT OF REAL ESTATE

SEMESTER 2, SESSION 2021/2022
BIE3005 REAL ESTATE MARKET RESEARCH
(MIXED DEVELOPMENT ANALYSIS)
LECTURERS:
Profesor Madya. Dr. Sr Rosli Bin Said
GROUP MEMBERS MATRICS NUMBER

Dessy Shafiqa Binti Azmi BIE190010
Insyirah Binti ‘Imaduddin BIE190014
Izzatul Shazlin Binti Mohamed Mahayudin BIE190015
Lay Chee Yin BIE190019
Siti Nurainun Binti Rokani BIE190038
Tan Min Hui BIE190043
MD REAL ESTATE CONSULTANT
LEVEL 10, MENARA MILLENIUM, JALAN DAMANLELA, BUKIT DAMANSARA, 50490 KUALA LUMPUR
TEL: 03-95432221 | FAX: 555-321-0106 | EMAIL: MD_consultancy@gmail.com
TABLE OF CONTENT
TABLE OF CONTENT .................................................................................................ii
LIST OF TABLES ........................................................................................................ vi
LIST OF FIGURES .....................................................................................................vii
SECTION 1: INTRODUCTION ................................................................................... 1
1.1 TERMS OF REFERENCE............................................................................... 1
1.2 SCOPE OF WORK .......................................................................................... 1
1.3 METHODOLOGY ........................................................................................... 1
1.4 STUDY LIMITATIONS AND DISCLAIMERS ............................................ 2
SECTION 2: REAL ESTATE DETAILS...................................................................... 4
2.1 PARTICULARS OF TITLE ............................................................................ 4
2.2 LOCATION ..................................................................................................... 5
2.3 DESCRIPTION OF PROPERTY .................................................................... 5
2.4 SURROUNDING ............................................................................................. 5
2.5 ACCESSIBILITY ............................................................................................ 5
2.6 CURRENT LAND USE................................................................................... 6
2.7 PLANNING PROVISION (ZONING) ............................................................ 6
SECTION 3: ECONOMIC AND SOCIO-ECONOMIC FACTORS ............................ 7
3.1 THE NATIONAL ECONOMIC ...................................................................... 7
3.1.1 Gross Domestic Product (GDP) ................................................................. 7
3.1.2 Consumer Price Index .............................................................................. 10
3.1.3 Inflation Rate ............................................................................................ 12
3.1.4 Overnight Policy Rate (OPR) and Base Lending Rate (BLR) ................. 13
3.1.5 Stamp duty exemption.............................................................................. 15
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3.2 REVIEW OF NATIONAL DEVELOPMENT PLANS AND POLICIES .... 16
3.2.1 National Development Plans .................................................................... 16
3.2.2 National Policies of Twelfth Plan ............................................................ 17
3.3 PERFORMANCE BY SECTOR ................................................................... 20
3.3.1 OFFICE .................................................................................................... 20
3.3.2 RETAILS ................................................................................................. 23
3.3.3 RESIDENTIAL ........................................................................................ 27
3.4 EMPLOYMENT AND OCCUPANCY RATE ............................................. 35
3.4.1 Employed Persons & Employment-to-Population Ratio, Q1 2019 - Q1

2022 35
3.4.2 Employed Persons by Status in Employment, Q1 2020 - Q1 2022 ......... 35
3.5 POPULATION ANALYSIS .......................................................................... 37
3.5.1 Growth Rate ............................................................................................. 37
3.5.2 Migration Rates ........................................................................................ 39
3.5.3 Household Size......................................................................................... 41
3.6 INCOME LEVELS ........................................................................................ 43
3.6.1 Household Income Estimates Malaysia, 2020 ......................................... 43
3.7 GUIDELINES ON ACQUISITION OF PROPERTY ................................... 46
3.7.1 Land Selection .......................................................................................... 46
3.7.2 Official Application.................................................................................. 46
3.7.3 Application Process .................................................................................. 47
3.7.4 Land Valuation ......................................................................................... 47
3.7.5 Investigation and Payment of Compensation ........................................... 47
3.7.6 Reference to Court ................................................................................... 48
3.8 INCENTIVES ................................................................................................ 48
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SECTION 4: INFRASTRUCTURE ............................................................................ 49
4.1 Light Rail Transit (LRT) ................................................................................ 49
4.2 Mass Rapid Transit (MRT) ............................................................................ 49
4.3 Bus Station ..................................................................................................... 50
4.4 Highways and Roads ...................................................................................... 50
4.5 Future projects ................................................................................................ 51
SECTION 5: REAL ESTATE MARKET ................................................................... 53
5.1 Overview of Malaysian Real Estate Market .................................................. 54
5.2 Performance of the Real Estate Market.......................................................... 54
5.2.1 Performance of the Real Estate Market in Kuala Lumpur ....................... 54
5.2.2 Performance of the Real Estate Market in Petaling ................................. 55
SECTION 6: PROPERTY PRODUCTIVITY ANALYSIS ........................................ 56
6.1 Site Determinants of Use................................................................................ 56
6.1.1 Physical Characteristics............................................................................ 56
6.1.2 Access....................................................................................................... 58
6.1.3 Immediate Adjacent Land Use ................................................................. 58
6.1.4 Zoning and Legal Constraint .................................................................... 59
6.1.5 Conclusion on Site Determinants of Use ................................................. 59
6.2 Location Determinants of Use........................................................................ 60
6.2.1 City, Regional and Neighbourhood Growth ............................................ 60
6.2.2 Area Accessibility .................................................................................... 61
6.2.3 Conclusion on Location Determinants of Use ......................................... 61
6.3 Urban Growth Structure ................................................................................. 61
6.3.1 Existing Growth Pattern ........................................................................... 61
6.3.2 Conclusion on Urban Growth Structure ................................................... 61
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6.4 Major Employment Nodes ............................................................................. 62
6.4.1 Identify Regional Nodes........................................................................... 62
6.4.2 Conclusion on Regional Nodes Analysis ................................................. 62
6.5 Growth Patterns and Zoning .......................................................................... 63
6.5.1 Zoning ...................................................................................................... 63
6.5.2 Planned Development .............................................................................. 63
6.5.3 Conclusion on Growth Patterns and Zoning ............................................ 65
SECTION 7: ANALYSIS BY SECTOR (DEMAND & SUPPLY ANALYSIS) ....... 67
7.1 Residential ...................................................................................................... 67
7.2 Retails ............................................................................................................. 74
7.3 Hotel ............................................................................................................... 76
7.4 Office .............................................................................................................. 77
SECTION 8: PROPOSED LAND USE MIX .............................................................. 78
8.1 Planning requirements .................................................................................... 78
8.1.1 Serviced Apartment .................................................................................. 78
8.2 Land Use Mix Component ............................................................................. 82
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LIST OF TABLES
TABLE 2.1: PARTICULARS OF TITLE ......................................................................................................................... 4

TABLE 3.1: MALAYSIA OVERNIGHT POLICY RATE DECISION AND STATEMENT .................................................... 14
TABLE 3.2: BASE RATE AND BASE LENDING RATE OF FINANCIAL INSTITUTIONS IN MALAYSIA (EFFECTIVE FROM
6 AUGUST 2020) .......................................................................................................................................... 15
TABLE 3.3: TRANSACTION OF OFFICE ................................................................................................................... 20
TABLE 3.4: MALAYSIA: SHOPPING COMPLEX TRANSACTION IN 2020 .................................................................. 23
TABLE 3.5: MALAYSIA : COMPLETED SHOPPING COMPLEX IN 2021 ................................................................... 24
TABLE 3.6: POPULATION SIZE AND ANNUAL POPULATION GROWTH RATE, 2010-2021 ..................................... 37
TABLE 3.7: PERCENTAGE OF HOUSEHOLDS BY HOUSEHOLD GROUP TRANSITION AND ACTIVITY STATUS OF
HEAD OF HOUSEHOLD, MALAYSIA, 2020 (%) .............................................................................................. 45
TABLE 6.1: UPCOMING PURPOSE-BUILT OFFICES IN KUALA LUMPUR ................................................................. 64
TABLE 6.2: UPCOMING RETAILS IN KUALA LUMPUR ............................................................................................ 64
TABLE 6.3: UPCOMING RESIDENTIALS DEVELOPMENT IN KUALA LUMPUR ......................................................... 65
TABLE 7.1: BIRTH RATE ANALYSIS ......................................................................................................................... 68
TABLE 7.2: MIGRATION RATE ANALYSIS ............................................................................................................... 68
TABLE 7.3: NET POPULATION GROWTH RATE ...................................................................................................... 68
TABLE 7.4: ANALYSIS OF HOUSING STOCK ........................................................................................................... 69
TABLE 7.5: EXISTING STOCKS AND 'AMORTISATION' (IMMEDIATE REPLACEMENT) ............................................ 69
TABLE 7.6: HOUSING NEEDS TO SUPPORT THE POPULATION GROWTH .............................................................. 70
TABLE 7.7: TOTAL NATURAL REPLACEMENT (AMORTISATION @ 1%) ................................................................. 70
TABLE 7.8: TOTAL REQUIRED IMMEDIATE REPLACEMENT @ 4.3%) .................................................................... 71
TABLE 7.9: TOTAL UNIT NEEDED........................................................................................................................... 72
TABLE 7.10: DEMAND/SUPPLY CONDITION .......................................................................................................... 72
TABLE 7.11: EXISTING HOUSING ANALYSIS (TAKE-UP RATE) ................................................................................ 73
TABLE 7.12: EXISTING HOUSING ANALYSIS (TAKE-UP RATE) ................................................................................ 73
TABLE 7.13: LOCATION – RATING MATRIX ANALYSIS ........................................................................................... 75
TABLE 7.14: ESTIMATED POPULATION IN STUDY AREA........................................................................................ 77
TABLE 8.1: GUIDELINES FOR SERVICED APARTMENT ........................................................................................... 78
TABLE 8.2: DEVELOPMENT MIX COMPONENT ..................................................................................................... 83
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LIST OF FIGURES
FIGURE 3.1: MALAYSIAN’S QUARTERLY GDP FROM Q1 2018-Q4 2021 .................................................................. 8

FIGURE 3.2: MALAYSIA’S GDP (RM BILLION) AND ANNUAL PERCENTAGE CHANGE (%) FROM Q1 2018-Q4 2021 8
FIGURE 3.3: QUARTERLY GDP GROWTH BY KIND OF ECONOMIC ACTIVITY IN Q3 2021 AND Q4 2021 ................. 9
FIGURE 3.4: PERCENTAGE CHANGE OF CONSUMER PRICE INDEX BY MAIN GROUP............................................ 10
FIGURE 3.5: CONSUMER PRICE INDEX (CPI) BY STATE, FEBRUARY 2022 .............................................................. 11
FIGURE 3.6: MALAYSIA’S INFLATION RATE FROM 1985 TO 2025 ......................................................................... 12
FIGURE 3.7: MALAYSIA OVERNIGHT POLICY RATE................................................................................................ 14
FIGURE 3.8: TWELFTH MALAYSIA PLAN ................................................................................................................ 16
FIGURE 3.9: MALAYSIA : SUPPLY & OCCUPANCY OF PURPOSE-BUILT OFFICE (PRIVATE & GOVERNMENT) FROM
2017-2021 ................................................................................................................................................... 21
FIGURE 3.10: MALAYSIA : SUPPLY & OCCUPANCY OF PURPOSE-BUILT OFFICE (PRIVATE & GOVERNMENT)
FROM 2017-2021 ........................................................................................................................................ 21
FIGURE 3.11: PBO-RI & ANNUAL GROWTH: KLANG VALLEY, WP KUALA LUMPUR & SELANGOR 2021 ............... 22
FIGURE 3.12: MALAYSIA : SUPPLY AND OCCUPANCY OF SHOPPING COMPLEX 2017 – 2021 .............................. 24
FIGURE 3.13: MALAYSIA: SUPPLY AND OCCUPANCY OF SHOPPING COMPLEX 2017 – 2021 ............................... 25
FIGURE 3.14: MALAYSIA – RESIDENTIAL TRANSACTION ....................................................................................... 27
FIGURE 3.15: KUALA LUMPUR – RESIDENTIAL TRANSACTION ............................................................................. 28
FIGURE 3.16: MALAYSIA - NEW LAUNCHES & SALES PERFORMANCES ................................................................ 29
FIGURE 3.17: KUALA LUMPUR - NEW LAUNCHES & SALES PERFORMANCES ....................................................... 29
FIGURE 3.18: MALAYSIA - RESIDENTIAL MARKET STATUS .................................................................................... 30
FIGURE 3.19: KUALA LUMPUR - RESIDENTIAL MARKET STATUS .......................................................................... 31
FIGURE 3.20: MALAYSIA – RESIDENTIAL CONSTRUCTION ACTIVITY ..................................................................... 31
FIGURE 3.21: KUALA LUMPUR: CONSTRUCTION ACTIVITY ................................................................................... 32
FIGURE 3.22: MALAYSIA - RESIDENTIAL PRICE MOVEMENTS ............................................................................... 33
FIGURE 3.23: KUALA LUMPUR - RESIDENTIAL PRICE MOVEMENTS ..................................................................... 34
FIGURE 3.24: EMPLOYED PERSONS & EMPLOYMENT-TO-POPULATION RATIO, Q1 2019 - Q1 2022 ................... 35
FIGURE 3.25: EMPLOYED PERSONS BY STATUS IN EMPLOYMENT, Q1 2020 - Q1 2022 ....................................... 36
FIGURE 3.26: NUMBER, ANNUAL POPULATION GROWTH RATE AND PERCENTAGE OF POPULATION BY STATE,
2021 ............................................................................................................................................................ 38
FIGURE 3.27: POPULATION DENSITY BY STATE, MALAYSIA, 2021 ........................................................................ 38
FIGURE 3.28: POPULATION AGED 1 YEAR AND OVER BY MIGRATION STATUS, MALAYSIA, 2018 AND 2020 ...... 39
FIGURE 3.29: MIGRANTS BY STATE OF DESTINATION AND MIGRATION STATUS, MALAYSIA, 2018 AND 2020 ... 40
FIGURE 3.30: NET MIGRATION BY STATE, MALAYSIA, 2018 AND 2020 ................................................................ 41
FIGURE 3.31: NUMBER OF HOUSEHOLDS, MALAYSIA, 2010 AND 2020 ............................................................... 41
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FIGURE 3.32: AVERAGE PRIVATE HOUSEHOLD SIZE BY STATE, MALAYSIA, 2010 AND 2020 ................................ 42
FIGURE 3.33: NUMBER OF HOUSEHOLDS, PETALING, 2020 ................................................................................. 42
FIGURE 3.34: HIGHEST NUMBER OF HOUSEHOLDS BY MUKIM, PETALING, 2020 ................................................ 43
FIGURE 3.35: MEDIAN AND MEAN OF MONTHLY HOUSEHOLD GROSS INCOME BY STATE, MALAYSIA, 2019 AND
2020 ............................................................................................................................................................ 43
FIGURE 3.36: PERCENTAGE OF HOUSEHOLDS EXPERIENCING INCOME DECLINE, MALAYSIA 2020 ..................... 44
FIGURE 3.37: INCOME DISTRIBUTION BY HOUSEHOLD GROUP, MALAYSIA, 2020............................................... 45
FIGURE 4.1: ACCESSIBILITY PLAN OF SUBJECT SITE .............................................................................................. 50
FIGURE 4.2: THE ALIGNMENT MAP OF MRT 2 PUTRAJAYA LINE .......................................................................... 52
FIGURE 4.3: KLANG VALLEY INTEGRATED TRANSIT MAP...................................................................................... 53
FIGURE 5.1: MALAYSIA PROPERTY TRANSACTION VOLUME ................................................................................ 54
FIGURE 5.2: KUALA LUMPUR PROPERTY VOLUME AND VALUE TRANSACTION IN 2022 Q1 ................................ 54
FIGURE 5.3: PETALING - PROPERTY VOLUME AND VALUE TRANSACTION IN 2022 Q1 ........................................ 55
FIGURE 6.1: CROSS SECTION PLAN OF SLOPE ANALYSIS....................................................................................... 56
FIGURE 6.2: SLOPE ANALYSIS FOR LINE AB (NORTH-SOUTH) ............................................................................... 56
FIGURE 6.3: SLOPE ANALYSIS FOR LINE CD (WEST-EAST) ..................................................................................... 57
FIGURE 6.4: INTERIOR ROAD IN THE SUBJECT SITE .............................................................................................. 57
FIGURE 6.5: ACCESS TO THE SITE .......................................................................................................................... 58
FIGURE 6.6: IMMEDIATE ADJACENT LAND PLAN .................................................................................................. 59
FIGURE 6.7: TRADE AREA – RADIUS ANALYSIS ..................................................................................................... 60
FIGURE 6.8: REGIONAL NODES PLAN .................................................................................................................... 62
FIGURE 6.9: ZONING PLAN SURROUNDING THE SUBJECT SITE ............................................................................ 63
FIGURE 7.1: SHOPPING MALLS SURROUNDING THE SUBJECT SITE ...................................................................... 74
FIGURE 7.2: 5 AREAS FOR LOCATION RATING ...................................................................................................... 75
FIGURE 7.3: FACILITIES PROVIDED BY ‘KOMUNE LIVING’ ..................................................................................... 77
FIGURE 8.1: FREE STANDING SERVICE APARTMENT ............................................................................................. 78
FIGURE 8.2: PROPOSED DEVELOPMENT LAYOUT ................................................................................................. 82
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SECTION 1: INTRODUCTION
This section will state the terms of reference and scope of work as has been agreed with
the client along with the methodology of research that will be implemented in order to achieve
the objectives. This section will also explain the study’s limitations and disclaimer on the
content and validity of the report.
1.1 TERMS OF REFERENCE
We, MD Real Estate Consultant have been instructed and commissioned by UEM
Sunrise Berhad via written instruction dated 6th April 2022 to conduct a preliminary study for
a proposed redevelopment of a piece of land which held under Title No. H.S.(D) 98022, PT 26
Section 16, Town of Petaling Jaya, District of Kuala Lumpur, State of Wilayah Persekutuan
Kuala Lumpur (herein after referred to as ‘subject site’).
1.2 SCOPE OF WORK
The scope of market research of this report are:
a) To determine the property productivity analysis for mixed development.
b) To analyse the market area concepts for the development.
c) To analyse the demand concepts of the mixed development.
d) To analyse the supply concepts of the mixed development.
e) To conduct demand and supply interaction analysis.
f) To recommend the land use mix for the mixed development.
1.3 METHODOLOGY
In this market research, a structured method of collecting all of the information and
chosen factual evidence from various resources. The methodology is also used for market and
site analysis. The following methodology was used in this report:
1
Site Viewing
A site inspection was conducted to inspect the subject property, surrounding neighbourhood,
and adjacent areas. In addition, a few pieces of information, such as competitors, facilities, and
amenities in the surrounding area, were considered because they could influence the viability
and feasibility of the development. Furthermore, evaluate the highest and best use of the subject
sites.
Market Research
The supply and demand are determined through market research, which includes target markets
such as Wilayah Persekutuan Kuala Lumpur.
Trend analysis
The present and future trends are examined to determine whether the project might well sell or
rent the property on the market. Trend analysis will help with retail, office and residential
development supply and demand.
Using available information
Relevant information available to support the research is analysed to achieve the project's
objectives. The following information is currently available:
i. Data from NAPIC

ii. Data from the Department of Statistics Malaysia
iii. Research Reports from Knight Frank Malaysia
iv. Other relevant websites
1.4 STUDY LIMITATIONS AND DISCLAIMERS
i. This Report is confidential to the Client for specific purpose to which it refers. It may
be disclosed to other professional advisers assisting the Client in respect of the
purpose, but the Client shall not disclose the report to any other person.
ii. Neither the whole nor any part of the Report of Certificate or any reference thereto
may be included in any published document, circular or statement nor published in
any way without our written approval of the form and context in which it may be
appear.
2
iii. This Report is based on the inherent interests and physical characteristics of the
subject site. The accuracy of the Report is based on the availability of data and
information sourced from both the public and private sectors and physical inspection
of the site and its surrounding area. We are therefore, constrained by the limitation of
the privacy and confidentiality of certain information, although every diligent effort
is made to procure correct and true information from various so as to assist us to arrive
at fair and reasonable opinion of the subject site.
iv. This Report has been prepared based on the current market conditions and it should
there be any unforeseen events which materially affect economic and market
conditions, our recommendations set forth would have to be reviewed based on the
new market conditions.
v. While we may have inspected the title of property as recorded in the Register
Document of Title, we cannot accept any responsibility for its legal validity.
vi. The data and information relied upon in the preparation of this report is derived from
information inquiries obtained from authoritative third parties of which is considered
reliable and acceptable.
vii. This Report is meant for the exclusive use of the interested parties only, and no
liability is extended to any third party for the use of the whole or any part of its
contents in any dealings or proceedings without the prior written consent of the client
as stated in this report.
viii. All values or forecasts narrated in the report are intended as informal opinions and
offered without the same liability as attached to this Report.
ix. This Report is confidential to the Client for the specific purpose to which it refers. It
shall not be disclosed to any other party without our consent. No responsibility is
accepted to any other part and neither the whole, not any, nor reference thereto may
be included in any published document, statement or circular, or published in any way,
nor in any communication with third parties, without our prior written approval of the
form and context in which it will appear.
3
SECTION 2: REAL ESTATE DETAILS
The previous chapter had briefly introduced the purpose of report, scope of work,
methodology of research and study limitations. Next, this chapter will continue by describing
the real estate details of the subject site. It includes the particulars of title, description of the
land and building on the site, surrounding development, accessibility, current land use and
planning provision of the subject site.
2.1 PARTICULARS OF TITLE
Brief particulars of title for the subject site as extracted from a search of registered
document of title through the Wilayah Persekutuan Land and Mines Office (Pejabat Pengarah
Tanah dan Galian Wilayah Persekutuan) are as follows:
Table 2.1: Particulars of Title
Title No H.S.(D) 98022

Lot No PT 26 Section 16
Town Petaling Jaya
District Kuala Lumpur
State Wilayah Persekutuan Kuala Lumpur
Land area 214,476.37 square meters
Quit rent RM5,000.00
Tenure Term in Perpetuity
Category of land use Not stated
Registered owner University of Malaya Kuala Lumpur
Expressed condition Tanah ini hendaklah digunakan untuk tujuan
institusi pengajian tinggi awam sahaja.
Restricted in interest Not stated
Encumbrances Not stated
Certified copy of title search is attached as Appendix A.
4
2.2 LOCATION
The subject site is located along Jalan Dato Abu Bakar 16/1, off Jalan Universiti at
Section 16, 50603 Petaling Jaya, Wilayah Persekutuan Kuala Lumpur. The proposed site
located approximately 9.5 km from Kuala Lumpur City Centre. The location plan is shown in
Appendix B.
2.3 DESCRIPTION OF PROPERTY
The subject site is an irregularly shaped piece of land with a land area of 214,476.37
square metres, or 2,308,604 square feet. The site is mostly flat and on the same level as the
frontage road, Jalan Dato Abu Bakar, and the side road, Jalan Universiti. The site
accommodates Tun Syed Zahiruddin Residential College and semi-detached houses in a
scattered layout. The subject site is shown on the attached site plan, Appendix C.
2.4 SURROUNDING
Notable developments within the vicinity of subject site include education centre,
shopping malls and golf club. Education centre which is Universiti Malaya, is located 1.6km
to the Northeast of the subject site. Moreover, shopping mall which are Mid Valley Megamall
(6.3km) and 1 Utama Shopping Centre (6.5km) away from subject site. Also, there are Kelab
Golf Perkhidmatan Awam Malaysia which is 3.3km away from subject site and Dataran
Merdeka located 9km away from subject site. The surrounding plan, as shown in Appendix D.
2.5 ACCESSIBILITY
The subject site is well connected and easily accessible via four major highways: the
Damansara – Puchong Highway (LDP), the New Klang Valley Expressway (NKVE), the
Sprint Highway, and the Federal Highway. The availability of these connecting roads has
improved accessibility to destinations such as Kuala Lumpur City Centre (KLCC), which is
located approximately 9.5 kilometres to the south-west of the subject site. Furthermore, the
subject site can be reached via Jalan Utara, Jalan Bangsar, Jalan Kemajuan, and Jalan Universiti
as shown in Appendix E. Further to that, the subject site is accessible via public transportation,
including the Kelana Jaya LRT Line (Universiti LRT Station, Asia Jaya LRT Station, and
5
Taman Jaya LRT Station), TTDI MRT Station, Semantan MRT Station, Rapid KL buses, and
the PJ City free shuttle bus. The accessibility of subject site as shown in Appendix E.
2.6 CURRENT LAND USE
Based on City Planning System (CPS) Kuala Lumpur, the existing category of land use
of site is for institution purpose as shown in Appendix F.
2.7 PLANNING PROVISION (ZONING)
Based on Sistem Maklumat Guna Tanah Perancangan Bersepadu (i-Plan), the zoning
of the subject site is commercial as shown in Appendix G.
6
SECTION 3: ECONOMIC AND SOCIO-ECONOMIC FACTORS
Previous section had described the real estate details of subject site. Next to understand
more on the current economic conditions of the country, the national economic and policies
were reviewed in this chapter. This chapter will also present the reviews and elaborations on
performance of each sector (retails, office and residential) to give an overview on current
market performance of each sub sector. This chapter will then give an analysis on current
employment rate, population growth and income levels of the citizens which are some of the
crucial determinants in deciding a development. Finally, this chapter will give some insight on
the process of acquisition of the land as one of the factor that needs to be taken into account
because a development could not proceed without a legal interest on the land.
3.1 THE NATIONAL ECONOMIC
In the first quarter of 2022, the Malaysian economy posted a growth rate of 5.0% (S4
2021: 3.6%). This expansion is principally underpinned by better domestic demand as
economic activity continues to normalise following the reinstatement of the measures. The
situation has improved due to the revival of the job market, with the unemployment rate falling
to 4.1% (S4 2021: 4.3%), as well as the continuation of policy support. Strong foreign demand
resulting from the ongoing expansion of global technology cycles also contributed to economic
expansion. In terms of supply, the services and manufacturing sectors continue to drive
economic expansion at rates of 6.5% and 6.6%, respectively.
3.1.1 Gross Domestic Product (GDP)
Gross Domestic Product (GDP) is the monetary value of all products and services
generated inside a country during a specific time period, mostly a year. In simple terms, GDP
is a metric used to describe a country's economic output over a given period of time. GDP is
calculated using market prices and a base year. The GDP growth rate indicates the economy's
rate of expansion. This is accomplished by comparing the gross domestic product of the country
in one quarter to that of the previous quarter and to the same quarter the previous year.
7
Figure 3.1: Malaysian’s Quarterly GDP from Q1 2018-Q4 2021

Source: Department of Statistics Malaysia (2022)
Figure 3.2: Malaysia’s GDP (RM Billion) and Annual Percentage Change (%) from Q1 2018-Q4 2021
Malaysia's GDP increased by 3.6 percent in the fourth quarter of 2021, owing to robust
growth in exports and imports. Quarter-on-quarter, seasonally adjusted GDP increased by
approximately 6.6 percent (Q3 2021: -3.6%). Monthly economic performance grew modestly
in the fourth quarter, averaging 2.7% in October and accelerating to 5.4% in November 2021.
Nevertheless, growth slowed to 2.6% in December 2021. Malaysia's economic performance in
2021 overall demonstrated a recovery momentum, with growth of 3.1%, compared to a decline
of 5.6% in 2020.
8
From the current economic situation, the performance in 2021 will be lower than it was
before to the pandemic in 2019. However, the fourth quarter of 2021 economic performance
exceeded the fourth quarter of 2019 by 0.01 percent.
Figure 3.3: Quarterly GDP Growth by Kind of Economic Activity in Q3 2021 and Q4 2021
Manufacturing was the biggest contributor to Malaysia's economic performance. The

Manufacturing industry gained 9.1% in Q4 2021 (-0.8%), headed by Electrical, electronic, and
optical products (16.4%), followed by Petroleum, chemical, rubber, and plastic products
(9.1%). (6.5 percent). Overall, the Manufacturing sector grew 8.3% quarter-on-quarter (Q3
2021: -1.8 percent).
In the fourth quarter of 2021, the Services sector rose 3.2% (Q3 2021: -4.9%). This
sector grew 7.0% quarter-on-quarter seasonally adjusted. The wholesale and retail trade sub-
sectors grew by 1.3%, while the real estate, business services, and private education sub-sectors
declined.
This quarter, the agriculture sector recovered 2.8% (Q3 2021: -1.9%), boosted by the
Oil palm (4.8%) and other agriculture (5.4%) sub-sectors. Fruit output increased in the Oil
palm sub-sector, while vegetables, fruits, and paddy contributed to the other agriculture sub-
sector development. Seasonally adjusted, the agriculture sector grew by 0.2%.
The Mining & quarrying industry fell 0.9% (Q3 2021: -3.6%), dragged down by the
6.5% (Q3 2021: -8.0%) decrease in the Crude oil & condensate sub-sector. The Natural gas
sub-sector grew 3.9%. (Q3 2021: 2.1 percent). Seasonally adjusted, this industry grew by 0.6%.
9
In the fourth quarter of 2021, the Construction industry fell 12.2% (Q3 2021: -20.6%).
Nonetheless, specialised construction activity grew 9.0% (Q3 2021: 8.9%). Overall, the
Construction sector grew 6.2% quarter-on-quarter (Q3 2021: -13.5 percent).
3.1.2 Consumer Price Index
The Consumer Price Index (CPI) is a weighted average of the costs of a basket of
consumer goods and services, including transportation, food, and health care. The CPI is used
to track changes in the cost of living. The CPI is a frequently used metric for determining
inflation or deflation.
Figure 3.4: Percentage Change of Consumer Price Index by Main Group

Due to the base effect, the National Consumer Price Index (CPI) in February 2022
increased by 2.2% to 125.2 from 122.5 in the same month the previous year. The growth also
outpaced Malaysia's average CPI from 2011 to February 2022. (1.9%).
Core inflation tracks changes in the pricing of all goods and services, eliminating
volatile items such as fresh food and government-controlled goods. In February 2022, core
inflation increased by 1.8% over the same month the prior year. With a 3.5% increase, the
Transport category led the way.
10
Additionally, Food and Non-Alcoholic Beverages increased by 3.2 percent, followed

by Furnishings, Household Equipment, and Routine Household Maintenance 3.2%
accordingly, Restaurants & Hotels (2.6%), Recreation Services & Culture (1.6%), and
Miscellaneous Goods & Services (1.6%) (1.1%).
Figure 3.5: Consumer Price Index (CPI) by State, February 2022

In February 2022, the Consumer Price Index (CPI) for all states was positive, with two
states reporting increases more than the national CPI of 2.2%. Selangor & Wilayah Persekutuan
Putrajaya recorded the biggest rise (2.9%). Meanwhile, the three states with the lowest CPI
increases were Wilayah Persekutuan Kuala Lumpur (1.9%), Sabah & Wilayah Persekutuan
Labuan (1.8%), and Negeri Sembilan (1.8%).
All states saw an increase in the Consumer Price Index for Food and Non-Alcoholic
Beverages. Selangor & Wilayah Persekutuan Putrajaya showed the largest rise (5.1%),
followed by Johor (3.7%). The increase was attributed to greater food prices away from home
in February 2022 when compared to the previous year. Meanwhile, some states demonstrated
an increase below the national CPI of 3.7% for Food and Non-Alcoholic Beverages in February
2022.
11
3.1.3 Inflation Rate
The inflation rate is the annual pace at which a price index, typically the consumer price
index, increases over time.
Figure 3.6: Malaysia’s Inflation Rate from 1985 to 2025

Malaysia's inflation, as measured by the consumer price index (CPI), increased 2.2%
year on year in February 2022, above the country's average inflation rate of 1.9% from 2011 to
February 2022, official statistics revealed Friday. The increase in headline inflation was mostly
due to the transportation sector, which increased by 3.9%, and food and non-alcoholic drinks,
which increased by 3.7%.
However, in 2022, average inflation is expected to remain low which at 2% as the

underlying effect of fuel inflation dissipates. When economic activity continues to grow in a
high-cost environment, basic inflation, as measured by core inflation, is expected to recover to
a desirable level near its long-term average. Core inflation, on the other hand, is likely to
reduce, with higher inflationary threats being limited in part by the economy's and labour
market's sustained capacity. The outlook for inflation is continuing to be influenced by the
evolution of global commodity prices in response to the potential of further supply disruptions.
12
3.1.4 Overnight Policy Rate (OPR) and Base Lending Rate (BLR)
Bank Negara Malaysia's Monetary Policy Committee (MPC) chose to retain the
Overnight Policy Rate (OPR) at 1.75 percent as of its March 3rd, 2022, meeting.
The global economy is reviving. Despite recent moderate economic activity triggered
by COVID-19 re-transmission via Omicron variants, the overall recovery trajectory remained
on track. Many economies continue to experience significant inflation as a result of supply and
demand dynamics. More countries will resort to Endemic-19 COVID-19 management in the
future, thereby bolstering worldwide growth possibilities. Military confrontations in Ukraine,
on the other hand, have emerged as a significant risk to global development and trade prospects,
as well as commodity prices and financial market conditions. Global growth prospects will also
continue to be influenced by COVID-19 developments, the likelihood of continued global
supply disruptions, and severe financial market volatility following major economies' monetary
policy modifications.
The MPC believes that the current monetary policy stance is appropriate and
accommodating. Fiscal and financial policies will continue to bolster economic growth.
Despite the current uncertainty, the monetary policy stance will continue to be influenced by
new data and their implications for the overall outlook for domestic inflation and growth.
Reduced OPR will benefit the economy as a whole.
This could be to stimulate the economy, as when the OPR is reduced, the interest rate
on any savings is also reduced. People will be increasingly likely to remove money from Fixed
Deposits and focus on investments as a result of this trend.
13
Table 3.1: Malaysia Overnight Policy Rate Decision and Statement

Source: Bank Negara Malaysia (2022)
Figure 3.7: Malaysia Overnight Policy Rate

According to BNM, the transition to the Standardised Base Rate will have no effect on
the effective lending rates on existing retail loans, which will continue to be benchmarked
against the BR and Base Lending Rate (BLR).
Additionally, it stated that it will affect the new retail borrowers, as effective lending
rates for new borrowers would continue to be determined competitively and influenced by a
variety of factors such as the borrower's credit standing, funding conditions, and business
strategies. Table 3.2 displayed the base rate and base lending rate offered by financial
institution in Malaysia as of 6 August 2020.
14
Table 3.2: Base Rate and Base Lending Rate of Financial Institutions in Malaysia (Effective from 6 August 2020)
3.1.5 Stamp duty exemption
The full stamp duty exemption on instruments of transfer and loan agreements for first-
time home buyers will be extended until 31 December 2025 and will apply to sales and
purchases completed between 1 January 2021 and 31 December 2025.
The exemption from stamp duty on credit agreements and instruments of transfer issued
to rescuing contractors and initial house purchasers is extended for another five years. This
exemption applies to credit agreements and instruments of transfer entered into between 1
January 2021 and 31 December 2025 in connection with abandoned housing projects certified
by the Ministry of Housing and Local Government (KPKT).
15
3.2 REVIEW OF NATIONAL DEVELOPMENT PLANS AND POLICIES
3.2.1 National Development Plans
Twelfth Malaysia Plan
Transformational is the Twelfth Malaysia Plan, 2021-2025 (Twelfth Plan). While

building on previous plans, the Twelfth Plan injects key reforms in realising the spirit of
Keluarga Malaysia that would really transform Malaysia's growth trajectory in order to create
a successful, inclusive, and sustainable nation. Several dramatic and game-changing
innovations will be implemented. These include programmes to reduce poverty and improve
the living conditions of the rakyat. Particular attention will be paid to the very poor and those
in the lowest 10 percent of family income decile (B1).
The Twelfth Plan will address the condition of every Malaysian, regardless of gender,
race, social standing, or geographic location. Wawasan Kemakmuran Bersama 2030 (WKB
2030), which seeks to convert Malaysia into a united, prosperous, and dignified nation, will
lead Malaysia's development during the next decade. Between 1971 and 2015, the economy of
Malaysia grew at a rate of 6,2 percent annually. Even if growth slowed to 2.7% annually
between 2016 and 2020, Malaysia still outperformed the majority of emerging markets and
developing countries. The comparatively high economic development increased the welfare of
the citizens and reduced income disparity.
Figure 3.8: Twelfth Malaysia Plan

Source: www.pulse.icdm.com.my (2022)
16
The Twelfth Plan has considered the 6R method, which contains eight economic
stimulus programmes totaling RM530 billion, and the NRP's phased transition. Given the
current global and internal issues, the Twelfth Plan, the first half of WKB 2030, is crucial. It is
anticipated that the Plan will revitalise and reposition Malaysia in the global economy. It will
stimulate economic expansion, assure economic recovery, and reconstruct the economy in
order to attain prosperity, inclusion, and sustainability. In addition to guaranteeing
environmental sustainability, economic growth will be accompanied by a more fair distribution
of wealth to reduce inequities between income categories, ethnicities, and geographic regions.
The focus of the Twelfth Plan will also be on preserving national security and sovereignty and
strengthening national unity.
The Twelfth Plan is founded on three major themes: resetting the economy, bolstering
security, wellbeing, and inclusiveness, and improving sustainability. Four catalytic policy
enablers, namely the development of future talent, the acceleration of technology adoption and
innovation, the improvement of connectivity and transport infrastructure, and the strengthening
of the public service, will help the realisation of these themes. The foundation and building
blocks of Malaysia's development during the next five years and beyond will be these policy
enablers. Successful execution of the Twelfth Plan will result in shared prosperity, increase
inclusiveness, and pave the path for future generations to inherit a more sustainable Malaysia.
This will restore the long-term prosperity of Keluarga Malaysia.
3.2.2 National Policies of Twelfth Plan
Developing future talent
The goal of the Twelfth Plan will be the development of future talent through the
realignment of the labour market, education, and training.
Promoting fair CE and labour participation, as well as increasing labour market

assistance, are critical initiatives for realigning the labour market. In addition, elevating the
quality of education and utilising emerging technology will be the most important initiatives
for enhancing the education and training system.
Accelerating Technology Adoption and Innovation
17
This policy enabler describes two game-changers for accelerating technology adoption
and innovation: increasing digital connectivity for inclusive development and orienting
research and development towards commercialization, wealth creation, and economic growth.
Successful implementation of this policy enabler will, among other things, ensure 100 percent
4G coverage in populated areas, expanded 5G coverage, 100 percent urban and rural
households subscribing to the internet, 2.5 percent gross expenditure on R&D (GERD)
contribution to GDP, 10.5 percent e-Commerce contribution to GDP, and 25.5 percent digital
economy contribution to GDP. It is anticipated that the implementation of these initiatives will
increase national competitiveness and resilience, so better equipping Malaysia to become a
high-technology-based economy.
Enhancing Connectivity & Transport Infrastructure
The provision of efficient and inclusive transporta tion and logistics infrastructure will
continue to be a priority through increasing accessibility to public transport, enhancing trade
facilitation, and bolstering the institutional and regulatory framework. Through the integration
of rail and road networks between airports, ports, industrial districts, and cities, last-mile
connectivity will be improved. The capacity of port facilities and services will be expanded,
and a multimodal approach to cargo movement will be implemented by the same service
provider. In addition, enhancing the efficiency of the logistics ecosystem has been seen as a
game-changer for the logistics industry.
Initiatives will be taken to centralise the planning and development of the logistics hub,
accelerate digital adoption, encourage mergers and acquisitions among industry participants,
establish a single border agency, and develop a national regulatory framework for the
warehousing and maritime economy.
These efforts will allow the expansion of economic activity and contribute to the
socioeconomic development of the nation.
Strengthening the Public Service
This policy enabler substantially supports all themes and other policy enablers in
promoting the welfare of the rakyat and ensuring Malaysia's sustained socioeconomic growth.
The public sector will increase digitalization, citizen-centric decision-making, project
implementation, and collaboration and coordination among the three levels of government. In
18
recognition of the current deficiencies in personnel, governance ecology, and project

management, the public sector will be reinforced with an emphasis on openness and integrity.
In the Twelfth Plan, building a high-performing civil service, promoting the whole-of-
government concept, and increasing budgeting and project management will be given priority.
19
3.3 PERFORMANCE BY SECTOR
3.3.1 OFFICE
Transaction of Office: Malaysia
In 2021, eleven office building deals with a total value of RM2.23 billion were
recorded. Four's sale and purchase agreements were dated 2020 but were finalised in 2021. The
deal is summarised as follows:
Table 3.3: Transaction of Office

Source: NAPIC, JPPH (2022)
Transaction of Office: Kuala Lumpur
The purpose-built office segment saw 12 prominent transactions in the review period
with consideration of more than RM3.18 billion.
Supply and Occupancy of Office: Malaysia
20
Figure 3.9: Malaysia : Supply & Occupancy of Purpose-Built Office (Private & Government) from 2017-2021
As of the end of 2021, there was a total of 23.97 million square metres of existing office
space from 2,583 buildings, with another 1.65 million square metres (44 buildings) in incoming
supply and about 0.29 million square metres (12 buildings) in planned supply. WP Kuala
Lumpur topped all three supply categories, accounting for 41.0 percent of total existing office
space and 59.8 percent of total incoming supply space. As for the occupancy, The office market
continued to underperform in 2021, as the overall occupancy rate decreased to 78.3% from
80.2% in 2020.
Supply and Occupancy of Office: Kuala Lumpur
Figure 3.10: Malaysia : Supply & Occupancy of Purpose-Built Office (Private & Government) from 2017-2021
In 2021, the average occupancy rate for purpose-built office space decreased to 73,3
percent from 77,6 percent in 2020. The annual consumption was 5,603 s.m (2020: 31,880 s.m.).
Office Price and Rental: Malaysia
With a few exceptions, office lot prices were relatively consistent across the states. In
WP Kuala Lumpur, office space prices were mainly steady, with the exception of a 2.6%
increase in Plaza Mont' Kiara, where rents ranged from RM5,770 to RM6,810 p.s.m. A higher
price of RM16,150 p.s.m. was recorded at the more strategically positioned Q Sentral. In
21
Selangor, stratified office lot prices in Jaya One and 8Trium, Sri Damansara grew by 7.1% and
6.9%, respectively.
In 2021, the office renting market exhibited mixed performance. Several office
buildings in Kuala Lumpur had double-digit growth, including Menara Darussalam (13.5
percent), Menara AIA Sentral (Menara Standard Chartered) (12 percent), UBN Tower (14.4
percent), and UOA Centre (13.5 percent) (16.0 percent). The rent at Wisma Genting, Jalan
Sultan Ismail ranged from RM118.41 to RM131.32 per square metre.
Office Rental Index: Selangor, Klang Valley, Kuala Lumpur
Figure 3.11: PBO-RI & Annual Growth: Klang Valley, WP Kuala Lumpur & Selangor 2021
The influx of an additional 627,000 square metres of new office space into the Klang
Valley office market exacerbated the oversupply, which could be negative to office rental rates
if the situation persists. KV PBORI declined to a negative value in 2021, following two years
of sluggish growth. Kuala Lumpur's rental index remained stable, whereas Selangor's did the
opposite.
22
3.3.2 RETAILS
Retail Sector’s Performances
During the two major lockdowns of the MCO 2.0 and MCO 3.0 (including portions of
the initial two weeks of the National Recovery Plan) in 2021, the majority of the retail trade
was ordered to close, and as in 2020, Malaysian retailers relied on online shopping platforms
and delivery services to survive. Due to this recurrence, internet shopping has become a major
distribution route for retail goods and services. The reopening of retail stores and the
resumption of dine-in service at food-and-beverage establishments altered purchasing habits
once more. The easing of these restrictions had a substantial impact on online purchases, as
most Kuala Lumpur residents decided to return to their favourite brick-and-mortar stores rather
than continue shopping online.
Shopping Complex Transaction
The year recorded six shopping complex purchases with an accumulative worth of
RM1.28 billion; one each in Kedah, Negeri Sembilan and Sarawak and three in Selangor. Two
had its selling and purchase agreements due in 2020 but finished in 2021. The summary of
transaction is as mentioned below:
Table 3.4: Malaysia: Shopping Complex Transaction in 2020

23
Supply & Occupancy of Shopping Complex: Malaysia
Figure 3.12: Malaysia : Supply and Occupancy of Shopping Complex 2017 – 2021
The overall performance of the shopping centre continued to decline, with the
occupancy rate falling from 77.5% in 2020 to 76.3% in 2021. WP Kuala Lumpur and Selangor
had occupancy rates of 79.8 and 80.7%, respectively, but Johor and Pulau Pinang achieved
average occupancy rates of 73.1% and 70.9%, respectively. Melaka and Negeri Sembilan's
respective occupancy rates of 63.8% and 66.8% were among the lowest in the country.
Table 3.5: Malaysia : Completed Shopping Complex in 2021

24
Twelve new complexes completed in the review period, adding nearly 440,000 s.m. of
retail space into the market. As of the end of the year, there was approximately 17.28 million
s.m. of retail space in 1,062 shopping complexes, the majority of which were shopping centres
(567 buildings; 13.14 million s.m.). Johor dominated the existing retail market with 158
shopping centres totaling 2.4 million s.m.. There were an additional 43 complexes with an
incoming supply of 1.71 million s.m. and 11 complexes with a scheduled supply of 0.37 million
s.m.
Supply & Occupancy of Shopping Complex: Kuala Lumpur
Figure 3.13: Malaysia: Supply and Occupancy of Shopping Complex 2017 – 2021
25
The performance of the retail industry deteriorated as the average occupancy rate
declined from 82.0% in 2020 to 79.8% in 2021. Annual consumption was positive at 143,377
s.m (2020: -12,451 s.m.).
Retail Space Rental: Malaysia
In Klang Valley, rental rates for retail space were mainly stable, with a few complexes
exhibiting inconsistent performance. Suria KLCC commanded the highest rental range per
month, from RM458 p.s.m. to as high as RM2,300 p.s.m. at concourse level, with a marginal
increase of 3.6% to 5.8%, whereas rental at Semua House was generally stable except for its
ground floor units, which rented for between RM183 p.s.m. and RM217 p.s.m., a decrease of
The Curve Mutiara Damansara in Selangor had moderate growth of 2.3% to 3.6%, with rental
rates ranging from RM21.50 p.s.m. to RM422 p.s.m. Similarly, Subang Parade experienced
good increase of 5.6%, with rental rates ranging from RM129 to RM244 p.s.m. per month.
Retail Space Rental: Kuala Lumpur
In general, rental rates for retail space were constant with sporadic fluctuations.
Renewals of leases led to rent increases at Kuala Lumpur City Centre (Suria KLCC), Kompleks
Wilayah, Plaza Imbi, and Brem Mall. Suria KLCC maintained its importance, commanding
rental rates ranging from RM393.31 p.s.m. to RM2,301.75 p.s.m.
26
3.3.3 RESIDENTIAL
Residential Transaction: Malaysia
Figure 3.14: Malaysia – Residential Transaction

In 2021, there were 198,812 transactions valued at RM76.90 billion, an increase of

3.9% in volume and 16.7% in value compared to 2020. WP Kuala Lumpur (4.9%), Selangor
(10.7%), Pulau Pinang (16.3%), and Perak (16.3%) contributed to the improvement (3.2
percent). In contrast, Johor saw a 2.4 % fall in market activity.
Selangor had the biggest volume and value contributions to the national market share,
with 24.5% in volume (48,755 transactions) and 34.4% in value (RM26.49 billion). WP Kuala
Lumpur generated 11,129 transactions but came second in terms of value with RM9.69 billion,
contributing 12.6% of the market. Demand remained concentrated on terraced houses, which
accounted for almost 43.0% of all residential sales, followed by vacant plots and high-rise units,
each with a market share of nearly 15%. The price range of RM300,000 and below accounted
for 55.9% of the total, followed by RM300,001 to RM500,000 (24.6%), RM501,000 –
RM1,000,000 (14.8%), and more than RM1,000,000 (4.8%).
27
Residential Transaction: Kuala Lumpur
Figure 3.15: Kuala Lumpur – Residential Transaction

The residential sub-market sector's performance weakened during the review period,
with 11,129 transactions totalling RM9.69 billion, representing a fall of 4.9% in volume and
17.6% in value compared to 2020. (10,606 transactions worth RM8.24 billion). Condominium
and apartment units continued to drive the residential market, accounting for 49.6% of all
transactions (5,519 units).
New Launches & Sales Performances: Malaysia
28
Figure 3.16: Malaysia - New Launches & Sales Performances

On the primary market, fewer new products were introduced. In 2021, roughly 44,000
units were introduced, compared to 47,178 in 2020. As a result of a deteriorating real estate
market and a rise in unsold inventories, developers refrained from launching new projects,
therefore the fall was anticipated. In 2021, sales performance was average at 39.3%.
With a sales performance of 54.0%, Selangor had the biggest number of new releases
in the country, accounting for roughly 22.4% (9,827 units) of the national total. With a sales
performance of 49.2%, Johor recorded the second-highest quantity (5,513 units, 12.6% share).
Perak ranked third (5,239 units, 11.9% market share) with a 25.8% sales performance.
Single storey (10,667 units) and two to three storey (15,705 units) terraced houses
dominated the new releases with a 60.1% share, followed by condominium/apartment units
with a 27.4% share (12,018 units).
New Launches & Sales Performances: Kuala Lumpur
Figure 3.17: Kuala Lumpur - New Launches & Sales Performances

During the study period, the performance of new launches in the primary market
decreased by 51,2%. 5 029 units were introduced compared to 10,229 units in 2020. In a similar
fashion, the sales performance in 2021 was 14.4% lower than in 2020. (18.6%). Apartments
and condominiums accounted for 99.1% (4,983 units) of the total number of new launches.
29
Residential Market Status: Malaysia
Figure 3.18: Malaysia - Residential Market Status

The residential overhang scenario was less optimistic, with a volume of approximately
37,000 units valued at RM22.79 billion as of the end of the year, an increase of 24.7% and
20.5% in volume and value, respectively, compared to the previous year.
With 6,095 units worth RM5.28 billion, Selangor had the biggest number and value of
overhang in the country, accounting for 16.5% and 23.2% of the national total, respectively.
Following suit were Johor (6,089 units valued at RM4.72 billion), Pulau Pinang (5,493 units
valued at RM3.56 billion), and WP Kuala Lumpur (3,908 units valued at RM3.06 billion).
55.6% (20,505 units) of the national overflow were condominiums/apartments,

followed by terraced homes (21.3%; 7,839 units). Ironically, properties priced at RM300,000
or less were the plurality, constituting 31.5% of the total (11,610 units). This was followed by
RM500,001 to RM1,000,000 with 30,2% (11,139 units), RM300,001 to RM500,000 with
25,7% (9,461 units), and more than RM1,000,000 with 12,6% (4,654 units). On a positive note,
the number of unsold apartments under construction improved, decreasing by 2.1% to 70,231
units. However, unsold not completed homes increased by a significant 69.2% to 21,960 units.
30
Residential Market Status: Kuala Lumpur
Figure 3.19: Kuala Lumpur - Residential Market Status

The residential oversupply and unsold scenario was less optimistic as more unsold units
were documented throughout the review period.
Residential Construction Activity: Malaysia
Figure 3.20: Malaysia – Residential Construction Activity

Positive, increasing by 5% to 86,258 units in 2021 from 2020, headed by Selangor with
19,283 units. Likewise, anticipated new supply climbed by 8.2% to 77,585 units, headed by
WP Kuala Lumpur with 17,065 units. In contrast, completions decreased by 0.8% to 76,393
31
units. Nearly 5.96 million residential units existed at the end of the year, with more than 0.42
million in the incoming supply and nearly 0.43 million in the projected supply.
Residential Construction Activity: Kuala Lumpur
Figure 3.21: Kuala Lumpur: Construction Activity

The construction operations in the residential subsector were fairly active. Existing
residential units by the end of 2021 numbered 515,083, with 43,119 units in the incoming
supply and 64,117 units in the planned supply.
32
Residential Price & Rental: Malaysia
Figure 3.22: Malaysia - Residential Price Movements

In 2021P, the Malaysian House Price Index (MHPI) stood at 201.5 points with a modest
annual growth rate of 0.6%. The Terraced House Price Index was able to maintain a growth
rate of 2.0 percent due to the enduring demand for this housing category. However, the High-
Rise, Semi-Detached, and Detached House Price Indices had a minor decrease of 0.2%, 0.1%,
and 3.3%, respectively. Selangor and Johor increased by 1.6% and 2.6%, respectively, whereas
WP Kuala Lumpur and Pulau Pinang decreased by 3.6% and 1.7%, respectively, according to
the House Price Index for Malaysia's major states.
As for rental, in locations adjacent to LRT and MRT stations, as well as those in close
proximity to educational institutions, the rental market exhibited positive trends, indicating its
general stability. Kuala Lumpur experienced minor increases in favourable areas. Prices for
two-story terraces in Taman Tun Dr. Ismail (TTDI) rose by 3.5%, ranging from RM2,200 to
RM2,400 per month. In Selangor and Johor, the rental market was stable. Double-story terraces
at USJ 1 – USJ 20 rented for between RM1,200 and RM2,000 per month, whilst comparable
houses in Horizon Hills and Taman Laguna in Johor Bahru rented for between RM2,400 and
RM3,000 per month. In the northern region, the rental market in Pulau Pinang was generally
33
constant, however certain strata projects, including Pangsapuri Sri Orkid, Ocean Residences,
Pangsapuri Kamelia, and Wellesley Residence, showed modest contractions.
Residential Price & Rental: Kuala Lumpur
Figure 3.23: Kuala Lumpur - Residential Price Movements

In 2021P, the All-House Price Index for the state was 189.4 points, 3.6% lower than in
2020's 196.5 points. In 2021P, the average All House Price was RM752,142, a decrease from
the RM780,234 reported in 2020.
The rental market remained mainly constant, with slight increases observed in
favourable areas. The range of rent increases at Abadi Indah and 288 Residency was between
4.5 and 5.0 percent. The average gross rental yield for residential properties is between 1.1%
and 9.4%.
34
3.4 EMPLOYMENT AND OCCUPANCY RATE
3.4.1 Employed Persons & Employment-to-Population Ratio, Q1 2019 - Q1 2022
In the first quarter of 2022, the number of employed individuals continued to expand
by a greater percentage year-over-year, increasing by 2.2% compared to 1.8% in the fourth
quarter of 2021. Thus, the number of employed individuals increased by 338,300 to reach 15,57
million. Therefore, the economy's ability to create jobs, as measured by the employment-to-
population ratio, increased by 0.9 percentage points from the same quarter of the previous year
to 66.2%. In the meantime, the number of employed persons increased by a mild 0.9% (+134,2
thousand) quarter-over-quarter, compared to the 1.1% increase recorded in Q4 2021. The
employment-to-population ratio increased by 0.5 percentage points during the same period.
Figure 3.24: Employed Persons & Employment-to-Population Ratio, Q1 2019 - Q1 2022

Source: Labour Force Survey Report, Malaysia Q1 2022, DOSM (2022)
3.4.2 Employed Persons by Status in Employment, Q1 2020 - Q1 2022
Except for the status in employment of unpaid family workers, all categories of
employed persons' employment status increased year-over-year and quarter-over-quarter in Q1
2022. Compared to the same quarter of the previous year, the number of self-employed workers
continued to increase, albeit at a slower rate of 6.9% (+174.4 thousand) compared to 8.7% in
Q4 2021. This category, which included conventional occupations such as farmers, retailers,
and peddlers as well as professional occupations such as consultants and freelancers, comprised
35
17.4% or 2.71 million people. In the first quarter of 2022, the highest percentage contribution
came from the employees' category, which registered 75.9%. Employed persons in this
category - which includes paid employment in the public and private sectors - increased by
1,2%, or an additional 145,000 individuals, bringing the total to 11,82 million. In addition, the
category of employers, which accounted for 3.4% of total employment, grew by 37.7 thousand
(7.7%) to account for 529.1 thousand employed individuals in the first quarter of 2022.
Figure 3.25: Employed Persons by Status in Employment, Q1 2020 - Q1 2022

Source: Labour Force Survey Report, Malaysia Q1 2022, DOSM (2022)
36
3.5 POPULATION ANALYSIS
3.5.1 Growth Rate
Population Size and Annual Population Growth Rate, 2010-2021
Table 3.6: Population Size and Annual Population Growth Rate, 2010-2021
The population of Malaysia is projected to reach 32.7 million in 2021, up from 32.6
million in 2020, at an annual growth rate of 0.2%. The drop in population growth rate was
attributable to the decline in the number of non-citizens from 3.0 million in 2020 to 2.7 million
in 2021.
This was consistent with the closure of national borders and the return of foreigners to
their home nations imposed by the Movement Control Order (MCO) in response to the global
spread of the COVID-19 epidemic. In 2021, the population of the United States will increase
from 29.7 million in 2020 to 30.0 million in 2021, a growth rate of 1%.
Population by State
In 2021, the states with the highest population composition were Selangor (20.1%),
Sabah (11.7%), and Johor (11.7%). (11.6 percent). In contrast, W.P. Labuan and W.P.
Putrajaya had the lowest population compositions, at 0.3% and 0.4%, respectively.
37
Nonetheless, W.P. Putrajaya recorded the greatest yearly population growth rate of 5.4% for
the years 2020–2021.
Figure 3.26: Number, annual population growth rate and percentage of population by state, 2021
Population Density: W.P. Kuala Lumpur had the Highest Population Density
Figure 3.27: Population density by state, Malaysia, 2021
38
The population density across Malaysia varies substantially. Malaysia has an average
population density of 99 people per square kilometre. W.P. Kuala Lumpur had the highest
population density, with 7,188 inhabitants per square kilometre, followed by W.P. Putrajaya
(2,354 inhabitants) and Pulau Pinang (1,691 inhabitants) per square kilometre. Sarawak has the
lowest population density with 23 people per square kilometre, followed by Pahang (47 people)
and Sabah (52 people).
3.5.2 Migration Rates
Population aged 1 Year and over by Migration Status, Malaysia, 2018 and 2020
The population of people aged 1 and over who have migrated declined by 40 thousand
to 484.1 thousand in 2020, compared to 524.1 thousand in 2018. The migration rate declined
by 0.1% between 2018 and 2020, falling from 1.6% to 1.5%.
Figure 3.28: Population aged 1 year and over by migration status, Malaysia, 2018 and 2020
In 2020, the percentage of intrastate migrants decreased by 2.4% compared to 2018. In

contrast, interstate migrants increased by 2.7% from 28.5% in 2018 to 31.2% in 2020. The
percentage of international migrants in Malaysia decreased by 0.3 % from 10.7% in 2018 to
10.4%.
39
Migrants by State of Destination and Migration Status, Malaysia, 2018 and 2020
Figure 3.29: Migrants by State of Destination and Migration Status, Malaysia, 2018 and 2020
Except for Johor and Kelantan, all states had a rise in the percentage of inter-state
migration in 2020 compared to 2018. With a rate of 100.0%, W.P. Putrajaya had the highest
inter-state migration. Because W.P Putrajaya does not have a district, there is no intra-state
migration. W.P. Kuala Lumpur (78.4%) and Terengganu came in second and third, respectively
(48.4%).
Except for Negeri Sembilan, Pahang, Perlis, and Terengganu, all states had a larger rate
of intra-state migrants than inter-state migrants in 2020.
40
Figure 3.30: Net migration by state, Malaysia, 2018 and 2020

Johor was the leading state receiving migrants in 2020, with net migration increasing
from 2.6 thousand to 11.9 thousand people, up from 9.3 thousand in 2018. Meanwhile, W.P.
Kuala Lumpur remained the leading state sending migrants, with a decrease in the number of
migrants from 22.5 thousand to 16.1 thousand.
3.5.3 Household Size
Number & Size of Household: Malaysia
The total number of households was 8.2 million, compared to 6.4 million in Census
2010, with an average annual growth rate of 2.6% from 2010 to 2020.
Figure 3.31: Number of households, Malaysia, 2010 and 2020

41
Figure 3.32: Average Private Household Size by State, Malaysia, 2010 and 2020
In a decade, the average number of private households in Malaysia decreased from 4.2
to 3.9 people. Except for Kelantan and W.P. Putrajaya, all states experienced a reduction in
average private household size in comparison to 2010. Kelantan had the largest average private
household size in 2020, with 4.8 persons per home, followed by Sabah (4.7 persons) and
Terengganu (4.1 persons). W.P. Kuala Lumpur had the smallest average size of private
households (3.3 persons). The average size of private households in Sabah decreased the
greatest from 5.5 persons in 2010 to 4.7 persons in 2020.
Number & Size of Household: District of Petaling
In 2020, the total number of households in Petaling was 617.7 thousand, with an
average size of 3.8.
Figure 3.33: Number of households, Petaling, 2020

42
Figure 3.34: Highest number of households by mukim, Petaling, 2020

3.6 INCOME LEVELS
3.6.1 Household Income Estimates Malaysia, 2020
Median and Mean of Monthly Household Gross Income by State, Malaysia, 2019 and 2020
Figure 3.35: Median and Mean of Monthly Household Gross Income by State, Malaysia, 2019 and 2020
43
Median and mean monthly household gross income in 2020 is RM5,209 and RM7,089
respectively. Median and mean values decreased by 11.3% (2019: 3.9%) and 10.3% (2019:
4.2%) correspondingly. Median and mean monthly household gross income fell in all states.
W.P. Putrajaya had the lowest monthly household income loss and the highest median and
mean monthly household gross income, at RM9,743 and RM12,322 respectively. Kelantan's
median and mean incomes were RM3,010 and RM4,411 respectively.
Household Experiencing a Decline Income
Figure 3.36: Percentage of Households Experiencing Income Decline, Malaysia 2020

Most households witnessed a reduction in income and dropped to a lower income

decile. In 2020, there were 12.5% more low-income households. 20% of M40 households with
incomes between RM4,850 and RM10,959 have shifted to B40. 12.8 percent of T20 households
have moved to M40 due to the COVID-19 epidemic. B40 and M40 households lose more
income than T20 households.
44
Income Distribution by Household Group, Malaysia, 2020
Figure 3.37: Income Distribution by Household Group, Malaysia, 2020

The distribution of income for B40 and M40 decreased to 15.9% (2019: 16.0%) and
36.9% (2019: 37.2%), respectively. In the meantime, the T20 group owned 47.2% of income,
up 0.4 percentage points from 2019.
Households by Household Group Transition and Activity Status of Head of Household,

Malaysia, 2020
Table 3.7: Percentage of Households by Household Group Transition and Activity Status of Head of Household,
Malaysia, 2020 (%)
A total of 88.5 per cent of head of households with the status of are paid employees
have shifted from T20 to M40 group (Table 1). Meanwhile, 74.2 per cent of households headed
by paid employees have shifted from M40 to B40 group. At the same time, the shift of
households from T20 to M40 group involved 9.9 per cent of households with self-employed
head of households. Besides that, 22.9 per cent of households headed by self-employed
individuals have switched from M40 to B40 group.
45
3.7 GUIDELINES ON ACQUISITION OF PROPERTY
In the case of the acquisition of any land for use by federation ministries/departments
(excluding federal statutory organisations that may possess land in their own name), the
following processes must be strictly adhered to.
3.7.1 Land Selection
Ministries/departments requiring land must determine the site's requirements two years
prior to the date the land is required. This will be accomplished through agreements between
land-needing ministries/departments and district officials/land administrators (PT). These talks
must be conducted through the site selection committee and must take into account the
suitability of land/site in terms of location, usage, price, and availability of sufficient finances
for the implementation of projects.
At this stage, any social and economic issues resulting from the acquisition should be
considered. Existing land squatters should be avoided, for instance. In order to acquire land for
the implementation of new projects, the ministry or department must seek the advice of local
authorities and other technical agencies. The technical department's opinion is not required,
however, if the acquisition involves the expansion of existing projects, such as the widening of
highways, etc. The ministry or agency should decide if notice is needed under section 4 of the
Land Acquisition Act (APT) of 1960.
The final choice about site selection must be made at least six months prior to the
acquisition date of the land. However, if Section 4, APT 1960 notification is required, the
Federal Lands Commissioner (PTP) must be notified six months prior to the day the land is
required.
3.7.2 Official Application
Once the final decision on site selection has been reached, the relevant ministry or
department should write to the PTP and request that the formal application be submitted on his
behalf to the PBN. The format of the letter to be sent to the PTP is specified on page A.
Application Letter to the PTP must be submitted along with the following plans and documents:
• 25 acquisition plans utilising the same scale as those found in the relevant land office.
46
• The perimeter of proposed lots shall be coloured red.

• PTP will submit a formal application to the PBN through the Director of Lands and
Mines (PTG) using a particular application form by sending copies to the relevant
parties upon receipt of an application from a ministry or department.
3.7.3 Application Process
When the PT receives a copy of a formal application from PTP, he must process the
application, including submitting a summary document for the PBN's consideration. The
summary document must contain the following information, among others:
• Gazette under section 4, if a study on the suitability of the site is required;

• Gazette under section 8;
• Acquisition through immediate testimony under section 19, if requested, and
• Temporary Occupancy under Part vii APT 1960, if necessary.
When the PBN is approved, the PTG requests that the declaration be published in the
Government Gazette as soon as practicable. This is required since the activity of publication
typically takes a considerable amount of time, preventing further action from being taken.
3.7.4 Land Valuation
PT is required to contact the Director of State Valuation and Property Services without
waiting for news to be released during the section 8 gazette declaration. This will prevent
delays. To receive an appraisal from the department of land valuation and property services, a
form similar to the one on page B should be utilised.
3.7.5 Investigation and Payment of Compensation
The PT should be aware that copies of Form E and, if necessary, Form F will be
submitted to the relevant government or department. In accordance with section 55 (2), a
ministry or department representative may testify on the day of the investigation by providing
a confirmation letter signed by the state secretary. Additionally, a copy of the E form must be
given to PTP for their records.
47
On the day of the investigation, interested parties or their representatives are permitted
to attend. When the investigation is complete, PT must issue written orders in form G and
provide form H to the parties involved. Forms G and H must also be provided to the relevant
ministry or department. Even PT is required to deliver its written order within two years of the
date of the form D gazette. Failure to do so will result in the expired form D and invalid
acquisition proceedings.
After receiving a copy of Form H, the relevant ministry or department must make
immediate payment of compensation within three months. If a section 29a APT award exceeds
RM 15,000 for any scheduled land, then 25% of the compensation is withheld for a period of
six weeks to allow ministries/departments to file an appeal pursuant to section 37 (3) 1960 Apt.
If no appeal is filed, the remaining 25% of compensation will be paid along with 8% interest
from the date of the initial payment. It is proposed that ministries/departments pay the full
compensation if they have no intention of appealing/protesting the award of PT.
In the situations outlined in section 29 (1) of Apt 1960, the money must be placed in
court or, if the interested individual died intestate, retained at the office of the Malaysia estate
administrator officials with immediate effect in order to avoid interest payments of 8% per
annum. (See Director General of Lands and Mines Circular 1/1992). The Ministry or
Department shall notify the PTP of the compensation payment date.
3.7.6 Reference to Court
As stated in section 37 of the Land Acquisition Act of 1960, any interested party or
party on whose behalf the land is acquired may refer the matter to the court via PT. The parties'
attention is brought to section 38 of the procedure and duration of a possible reference. In
accordance with the conditions of reference, the necessary deposit must be paid within 30 days
of receiving the letters of PT.
3.8 INCENTIVES
As of the date of research, there is no specially provided incentives on mixed

development by the government.
48
SECTION 4: INFRASTRUCTURE
The property's productivity is highly dependent on infrastructure determinants.

Transportation links such as bus routes and highways, as well as public facilities such as bus
stops, rail transit stations, and MRT stations are examples. The availability of relevant
infrastructure will impact a property's ability to provide services to meet human needs, house
economic activities, and provide satisfaction and amenities. Infrastructure promotes economic
inclusion, increases productivity and growth, and facilitates trade and connectivity. Therefore,
the infrastructure determinants must be identified to see their impacts on the property
productivity which influences its marketability which will be further elaborate in this section.
4.1 Light Rail Transit (LRT)
Section 16 is one of the most strategic locations in Petaling Jaya, with easy access and
a plethora of amenities nearby. Within a 10 KM radius, numerous LRT stations include Taman
Jaya Station, Asia Jaya Station, Universiti Station, and Kerinchi Station. The nearest LRT
station is the Taman Jaya Station which is located 3.4 KM away from the subject land, followed
by Universiti Station which is 4.7 KM away from the subject land. While for the Universiti
Station is located 4.7 KM away from the subject land followed by Asia Jaya Station located
4.8 KM away from the subject land via the Jalan Bukit 11/2 which is the shortest route.
4.2 Mass Rapid Transit (MRT)
Apart from LRT stations, Section 16, Petaling Jaya also consists of a couple of MRT
stations around that area. When compared to the LRT, MRT trains allow travel from city areas
to zones outside the city limits, whereas the LRT only operates within the city's confined limits.
In terms of capacity, the MRT can transport approximately 1,950 passengers in a single trip,
whereas the LRT can only transport approximately 600 passengers in a single trip. In 2017, the
government opened the first MRT line, the Sungai Buloh-Kajang Line. The Sungai Buloh-
Kajang Line runs 51 kilometres from Sungai Buloh to Kajang, passing through 31 stations. The
line will run through the city centre and serve densely populated suburban areas such as Kota
Damansara, Mutiara Damansara, Bandar Utama, Taman Tun Dr Ismail, Bukit Damansara,
Cheras, Bandar Tun Hussien Onn, and Balakong, serving a catchment population of 1.2 million
people. The nearest MRT station to the subject land is Taman Tun Dr Ismail Station, which is
49
3.8 kilometres away via the shortest route, Jalan 17/1. Furthermore, the Phileo Damansara and
Pavillion Damansara Heights Pusat Bandar Damansara are both 4.4 KM and 6.9 KM away
from the subject property respectively.
4.3 Bus Station
When compared to other modes of mass transit like MRT and LRT, bus service
frequency can usually be implemented relatively quickly and cheaply. The bus is required to
provide a convenient service for those passengers, particularly those who do not own a vehicle.
The bus stations should be located near to points of high demand for maximum passenger
convenience. There are a couple of bus stations located nearby the subject land which is in the
area of Section 16, Petaling Jaya, they are MRT Phileo Damansara, Pintu A (Pj823), Sekolah
Menengah Kebangsaan Sultan Abdul Samad (Utara) (Pj245), Universiti Islam Antarabangsa,
Petaling Jaya (Barat) (Pj236), Kolej Kediaman Keempat and Universiti Malaya (Kl2348). The
nearest bus station is located 610 M away from the subject land which is Sekolah Menengah
Kebangsaan Sultan Abdul Samad Station. The following nearest bus station is the Universiti
Islam Antarabangsa, Petaling Jaya (Barat) (Pj236) which is located 1.6 KM away from the
subject land. The MRT Phileo Damansara, Pintu A (Pj823) is 4.4 KM away from the subject
land. The passenger can walk to SMK Sultan Abdul Samad Station and take the T815 bus to
arrive at MRT Phileo Damansara Station.
4.4 Highways and Roads
Figure 4.1: Accessibility plan of subject site
50
The subject site is located in Petaling Jaya, which is only 10 kilometres from Kuala
Lumpur. Access to and from Petaling Jaya is made possible by a variety of major routes due to
its strategic location on the Selangor-Kuala Lumpur state border. Travelers from Shah Alam
and Klang frequently use the Federal Highway to reach Petaling Jaya. Residents of Kuala
Lumpur travel to and from Petaling Jaya by using the Jalan Bangsar via the Federal Highway.
Residents of Section 16, Petaling Jaya, can also use the Jalan Profesor Diraja Ungku Aziz,
formerly known as Jalan Universiti, to travel to Damansara, which includes the 1 Utama
Shopping Centre. Petaling Jaya residents can also access the Federal Highway via Jalan Utara
and Jalan Kemajuan.
4.5 Future projects
Mass Rapid Transit MRT 2 (Completed)
MRT 2 will be started to operate on 16 June 2022 for the phrase 1 while phrase 2 will
start operation on January 2023. The MRT 2 also known as The Putrajaya Line is the second
line to be built as part of the KVMRT Project. It will serve a 2-million-person corridor that
runs from Kwasa Damansara, a new township development in northwest Kuala Lumpur and
its southern suburbs, to Putrajaya, Malaysia's federal administrative center. The alignment will
have a length of 57.7km, consisting of 44.2km of elevated tracks and 13.5km running through
underground tunnels. It will have 36 operational stations of which 27 are elevated and 9
underground. A further 4 stations have been provided for the future. There will be 10
interchange stations and connecting stations, making it much easier for commuters to transfer
from the Putrajaya Line to existing and future rail lines, including the future Kuala Lumpur-
Singapore High Speed Rail. Sixteen stations will have park and ride facilities. Since some of
the stations of SBK line will become an interchange station or part of the Putrajaya line like
Kampung Selamat Station and Sungai Buloh Station as well as Kwasa Damansara enables the
residents in Petaling Jaya travel further up to Putrajaya.
51
Figure 4.2: The alignment map of MRT 2 Putrajaya Line
Light Rail Transit LRT 3
The LRT 3 project is known as the LRT Shah Alam Line. The third light rail transit line
for the Klang Valley, following the LRT Ampang and Sri Petaling Lines. The 37.8 km LRT
Shah Alam Line, which will connect Bandar Utama in Petaling Jaya to Johan Setia in Klang,
is scheduled to open in February 2024. Bandar Utama is a current MRT Kajang Line stop, so
it is one of the interchange stations, along with Glenmarie, which has an LRT Kelana Jaya Line
station. The LRT3 will benefit more than two million people in these areas including Petaling
Jaya and handle about 67,000 commuters every day.
52
Figure 4.3: Klang Valley Integrated Transit Map
SECTION 5: REAL ESTATE MARKET
The previous chapter had discussed the available infrastructure within the vicinity of
subject site. Next, this section will provide an overview on real estate market in general before
going in depth into analysis of each sector demand and supply in the next section.
53
5.1 Overview of Malaysian Real Estate Market
Figure 5.1: Malaysia Property Transaction Volume

According to the Figure 5.1, the volume of property transactions in Malaysia has shown
an unstable trend from 2017 to 2021. In 2017, the volume of property transactions in Malaysia
was 311, 824 units, a -2.68 percent year-on-year change, and it continued to rise in 2018 and
2019, with 313,710 units and 328,647 units respectively, representing 0.6 percent and 4.76
percent increases. However, the trend fell to 295,968 units representing a -9.94 percent decline
in 2020 due to the Covid-19 pandemic, before rising to 300, 497 units, representing a 1.53
percent increase in 2021.
5.2 Performance of the Real Estate Market
5.2.1 Performance of the Real Estate Market in Kuala Lumpur
Figure 5.2: Kuala Lumpur Property Volume and Value Transaction in 2022 Q1
54
Figure 5.2 shows the Kuala Lumpur property volume and value transaction in 2022 Q1.
According to the graph, the volume of property transactions in Kuala Lumpur was 4268 units
with a total transaction value of RM 5254.95 million in Q1, 2022.
5.2.2 Performance of the Real Estate Market in Petaling
Figure 5.3: Petaling - Property Volume and Value Transaction in 2022 Q1

Figure 5.3 shows the Petaling property volume and value transaction in 2022 Q1.
According to the graph, the volume of property transactions in Petaling was 911 units with a
total transaction value of RM1454.68 million in Q1, 2022.
55
SECTION 6: PROPERTY PRODUCTIVITY ANALYSIS
6.1 Site Determinants of Use
Site Determinants of Use will assist in providing the attributes of the site that would
complement and support a development. The attributes include, the physical characteristics of
the site, access to the site, immediate adjacent land use, zoning, and legal constraint.
6.1.1 Physical Characteristics
The site has a total area of 53 acres. In general, the subject site consists of flat and
undulating land topography. The maximum slope percentage of the subject site is 66% with an
average slope of 15.5%. The layout of proposed development must take into account the
topography aspect of the land, otherwise, cut and land fill work might be necessary to suit the
proposed layout. Cross section analysis has been conducted to obtain the elevation view of the
land topography as shown in figure below. Line AB represent the cross section of the land from
north to south side whereas line CD represent the cross section of the land from west to east.
Figure 6.1: Cross section plan of slope analysis
Figure 6.2: Slope analysis for line AB (north-south)
56
From west to east cross-section of elevation,
Figure 6.3: Slope analysis for line CD (west-east)
Despite there are some parts of the land which is slightly lower, the drainage system in
the area is found to be in a good record whereby there are no issues arising due to the drainage
factor. There is also no reported environmental issue in the area and the reported environment
impact analysis from nearby development shows that the air, water and sound degree of
pollution are at the safe level.
Next, the subject site also consists of existing interior road which connects to the main
access point, Jalan 16/1 as shown in the figure below.
Figure 6.4: Interior Road in the subject site
57
6.1.2 Access
Access plays a crucial part in a development. The subject site has an established access
through four main point as shown in the figure below.
Figure 6.5: Access to the site
The point of access to the site is located at the north-east (via Jalan Lingkungan Budi),
south (via Jalan 16/10), south-west and west side of the subject site both via Jalan 16/1. Jalan
16/1 is the major thoroughfare connected at the west side of subject site. The subject site are
also close to a major freeway, although there is no direct access to these freeways from the
subject site.
6.1.3 Immediate Adjacent Land Use
Immediate adjacent land use plays an important role in complementing the

sustainability of the proposed development on the subject site. To the east of subject property,
a substantial amount of land was solely developed for the purpose of a public institution which
are University Malaya. In fact, the subject site itself is the portion of University Malaya. To
the southeast of subject site, UM specialist centre is located and to the further southeast,
University Malaya Medical centre can be found. Next, to the south of subject site, it consists
of low-density residential development comprises of scattered layout of detached houses. There
are also a secondary school, SMK Sultan Abdul Samad situated at the south of subject site.
Finally, to the west of subject site, there are detached houses development which will be one
of the trade areas for subject site’s development.
58
Figure 6.6: Immediate adjacent land plan
6.1.4 Zoning and Legal Constraint
The land is currently used for the purpose of public institution. In the title, the land is
restricted with express condition whereby the land can only be used for the purpose of public
higher education institution only. Therefore, the developer will be required to comply with the
terms in land acquisition process to obtain the land. However, zoning does not appear to present
any major constraints on the land use possibilities. From the enquiry at local authority (Kuala
Lumpur City Hall), the site was zoned for commercial used which implied that the site has a
commercial potential to be develop with.
6.1.5 Conclusion on Site Determinants of Use
In sum, the site determinant of use did not show any major constraint to develop the
site with mixed development that may consists of residential, retail or offices. The huge parcel
of land allows the flexibility for any proposed redevelopment even though some land filling or
cutting may be needed to refine the layout. The immediate adjacent land use deems to generate
demand towards commercial development in the area whereby there is residence, university
students and hospital employee immediately nearby the subject site. Additionally, the subject
site is located along the main road and enjoy maximum visibility and accessibility from Jalan
16/1, which is beneficial for commercial development. The only restriction is on the legal
aspect of the land where the acquisition process of the land might be way more complicated
because it involves the historical and significant university.
59
6.2 Location Determinants of Use
Location Determinants of Use will assist in providing the attributes of the location of
subject site that would complement and support the development on subject site. The attributes
include, city, regional and neighbourhood growth and area accessibility.
6.2.1 City, Regional and Neighbourhood Growth
Figure 6.7: Trade Area – Radius Analysis
The subject site is located near to residentials, commercials, medical centre, and
institution. In the proximity of 8km, there are education institution, medical centre, retail,
offices, hotels, light industry, residential area and a golf course whereas in 16km from the
subject property, there are transit hub, education institution, residential area, shopping mall and
retail lots.
The proximity of subject property generates a high potential of demand generators

whereby a university is located just adjacent to the subject site. Additionally, the low density
of residential surrounding the subject site will be one of the major trade areas that will be the
target market to offer the development products. However, there are threat to the proposed
development that must be taken into consideration whereby the direct competitions come from
existing and future mixed commercial developments within the vicinity. Therefore, a strategy
to overcome this problem must be clearly outlined, developed, and implemented.
60
6.2.2 Area Accessibility
In terms of the location’s accessibility, the subject site is situated just 10km away from
Kuala Lumpur City Centre which are the central business district. The subject site also can be
easily accessed via nearby expressway whereby it is only 3km from the E23 Lebuhraya
SPRINT. The area is also facilitated with excellent public transportation system with several
nearby transit hub surrounding the subject site. In terms of air transportation, the nearest airport
is the Sultan Abdul Aziz Shah Airport which is located approximately 17km from the subject
site.
6.2.3 Conclusion on Location Determinants of Use
From the location determinants of use, we obtain that, the subject site is easily
accessible via major highways such as the Lebuhraya SPRINT, Lebuhraya Damansara-
Puchong (LDP), North Klang Valley Expressway (NKVE) and ELITE highway. The
maximum level of accessibility to nearby highway brings high advantage to the commercial
development on subject site whereby the trade area will be broadened with the connections via
highway.
6.3 Urban Growth Structure
6.3.1 Existing Growth Pattern
Generally, the immediate adjacent land use is low density housing of detached houses.
Majority of the development is at 2:1 floor area ratio whereby most of the development either
residential or commercial in the area are only up to 2 floors in average. The nearest high
intensity development where high rises are located were at the southwest of the subject site
which is Section 13. Towards the north of subject site which are closer to the highway, the
development intensity increased, and the development mainly aim to cater a bigger target
market such as hotels.
6.3.2 Conclusion on Urban Growth Structure
In sum, the closer the development from the highway, the uses are more intense as
compared to lower density when it is farther away from the highway. Subject site is benefited
61
from the nearest highway where it is just 3km away and therefore the subject site has a potential
for higher intensity of development.
6.4 Major Employment Nodes
Major employment nodes are also one of the crucial attributes that plays an important
role in determining the proposed development on the subject site whereby the employment
nodes will indicate the degree of demand towards the subject site’s development.
6.4.1 Identify Regional Nodes
The regional node in the area is Universiti Malaya, the university whereby the subject
site once a part of it. Another major node is the SS2 whereby it’s a famous packed retail areas.
Section 13 is also one of the nearby regional nodes whereby it consists of mixed development
of retails and offices. Finally, the Phileo Damansara Commercial centre is also deemed as one
of the main regional nodes of the area.
Figure 6.8: Regional Nodes Plan
6.4.2 Conclusion on Regional Nodes Analysis
The existing nodes emits competition towards the subject site development, but the
proposed development can overcome the competition and establish their own branding.
However, Universiti Malaya will remain dominant in the area but instead of emitting
competition, Universiti Malaya will generate demand to subject’s site development instead.
62
Since, before this, subject site is a part of Universiti Malaya which is one of the regional nodes,
therefore subject site is considered a part of the regional nodes.
6.5 Growth Patterns and Zoning
6.5.1 Zoning
The zoning of subject property is commercial. As displayed in figure below, the zoning
of surrounding of subject site are mainly residential. There is not substantial amount of land
were zoned under commercial whereby among those with commercial zoning, the subject site
has the biggest share in terms of size. The zoning plan of surrounding are displayed in figure
below.
Figure 6.9: Zoning Plan Surrounding the Subject Site
6.5.2 Planned Development
From the site survey and research, it is obtained that there are several new developments
relevant to the proposed development on subject whereby it could be implemented as the
benchmark or otherwise threat to the proposed development on subject site. The gathered
information on upcoming supply of similar proposed component is presented as follows:
63
Offices
Table 6.1: Upcoming Purpose-Built Offices in Kuala Lumpur
Development Location Area Completion

(NLA/GFA) sf
Felcra Tower Jalan Sultan Yahya 1.12 mil 2022
Petra
Merdeka 118 Jalan Hang Jebat 1.65 mil 2022
The MET Corporate KL Metropolis 628,000 2022
Towers
UOB Tower 2 Jalan Raja Laut 377,200 2022
Pavilion Embassy Jalan Ampang 720,000 2022
Corporate Towers
Aspire Tower KL KL Eco City 687,000 2022
Ecocity
Daya Bumi (Phase 3) Jalan Sultan 1.50 mil 2023
Hishamuddin
CITITOWER Persiaran KLCC 1.72 mil 2023
PHB Bangsar 61 Bangsar 548,000 2024
Oxley Tower Jalan Ampang 346,000 2024
Retails
Table 6.2: Upcoming Retails in Kuala Lumpur

Development Location Area (NLA/GFA) sf Completion
Pavilion Damansara Heights Damansara Heights 1.0 mil 2022
118 Mall @ Merdeka 118 Jalan Hang Jebat 850,000 2022
The Exchange TRX Mall Tun Razak Exchange 1.3 mil 2023
8 Conlay Kuala Lumpur City Centre 200,000 2023
Oxley Tower Kuala Lumpur City Centre 257,801 2023
64
Residential
Table 6.3: Upcoming Residentials Development in Kuala Lumpur

Development Location Type No of Selling Price Completion
Units
Trinity Pentamont Mont Kiara Condominium 330 From RM1.2 mil 2022
PR1MA Residensi Brickfields Apartment 920 From RM243,000 2022
Brickfields
Rumawip SkyAwani 3
Residences Setapak Condominium 1,905 From RM300,000 2022
M Vertica (Tower A) Cheras Condominium 808 From RM480,000 2023
Sunway Belfield
Residence (Tower A & B) Jalan Serviced 880 From RM590,000 2024
Belfield Apartment
Oakwood Premier Kuala Jalan Hang
Lumpur Jebat Serviced 348 N/A 2024
Apartment
Jendala Residences @
KLGCC Resort Bukit Kiara Serviced 520 From RM1.25 mil 2024
Apartment
Aetas Damansara @
Tropicana Golf & Country Damansara Condominium 226 From RM1.9 mil 2025
Resort
Vista Danau Kota Setapak Apartment 910 From RM300,000 2025
Taman Tiara
ALAIA Titiwangsa Titiwangsa Serviced 436 From RM380,000 2025
Apartment
The Fiddlewoodz @ KL
Metropolis Jalan Serviced 679 From RM850,000 2025
Dutamas Apartment
Verdura@Bangsar Hill Bukit Condominium 812 From RM835,000 2025
Park Bangsar
SOHO &
Astrum Ampang (Phase 1) Jalan Jelatek Serviced 2,072 From RM230,000 2026
Apartment
6.5.3 Conclusion on Growth Patterns and Zoning
In sum, the substantial portion of residential area surrounding the subject site are mainly
low-density development whereby the average floor area ratio is only up to 2:1. In greater
Kuala Lumpur, there will be several upcoming and to be completed projects comprising of
residential, retails mall and purposed built office which would and may be a new threat and
competition to the subject site’s proposed development. Nevertheless, the existing
65
development can be utilized as a guideline or benchmark to see the proposed development

demand by analysing and comparing the take up rate with absorption rate.
66
SECTION 7: ANALYSIS BY SECTOR (DEMAND & SUPPLY

ANALYSIS)
In this section, analysis on demand and supply drivers for each sub sector will be
conducted to understand the interaction of both drivers and current market for mixed
development within the subject site area.
7.1 Residential
Residential development is one of the prospect developments for the subject site. From
the site survey, it is obtained that the current residential offerings surrounding the subject area
are limited whereby the residential development mainly focus on landed products. Therefore,
to estimate and determine whether the existing residential adequate or not to fulfil the
population growth in the area, housing analysis is conducted by adopting population growth as
the determinants.
Housing Demand, Housing Need and Housing Requirement
Housing Demand is the quantity of housing that households want and can afford to
buy or rent in the open market without subsidy (preference and the ability to pay) whereas
Housing Need is the quantity of housing necessary to house households currently lacking their
own housing, or living in housing which is unsuitable or inadequate and who cannot afford to
buy or rent suitable housing in the open market (without adequate housing who are unable to
resolve their situation without assistance). Finally, Housing requirement is the amount of
housing needed to accommodate the population at appropriate minimum standards as defined
by government or in local policies.
67
Population Growth Analysis to determine the estimated Housing Requirement
Step 1: Conduct the Birth Rate Analysis to obtain the average Natural Growth Rate per annum.
Table 7.1: Birth Rate Analysis
Year Gross Birth Rate, A Gross Death Rate, B Natural Growth Rate, C (A-B)
2015 31,550 6,779 24,771
2016 32,085 7,215 24,870
2017 30,044 7,469 22,575
2018 32,235 7,676 24,559
2019 30,282 7,267 23,015
AVERAGE 31,239 7,281 23,958
Step 2: Conduct the Migration Rate Analysis to obtain the average Net Migration Rate per
annum.
Table 7.2: Migration Rate Analysis
Year Net Migration rate Total population Net Migration Rate

(per thousand
population)
2015 1.642 2,147,600 3,526
2016 1.619 2,117,000 3,427
2017 1.596 2,207,100 3,523
2018 1.577 2,236,500 3,527
2019 1.577 2,265,900 3,573
AVERAGE 1.602 2,194,820 3,515
Step 3: Sum up the Natural Growth Rate with Net Migration Rate to obtain the Average Net
Growth Rate which later will be used to forecast the population in upcoming years.
Table 7.3: Net Population Growth Rate
Year Natural Growth Rate, C Net Migration Rate, F Net Growth Rate, G
2015 24,771 3,526 28,297

2016 24,870 3,427 28,297
2017 22,575 3,523 26,098
2018 24,559 3,527 28,086
2019 23,015 3,573 26,588
AVERAGE 23,958 3,515 27,473
Step 4: Analysis of Housing Stock
68
The data on existing housing units in the study area is obtained through the database
from JPPH. From the number of existing units, the percentage of growth rate is calculated
whereby the year 2015 is treated as the base year. From the 5-year growth rate, an average of
growth rate per annum is calculated which is at 5.06% as shown in the table below.
Table 7.4: Analysis of Housing Stock
Year Existing Units Growth Rate Average Growth

Rate per annum
2015 168,000 10.12% 0.0506
2017 185,000
Step 5: Forecasting the future housing stock from the Average Annual Growth Rate
Table 7.5: Existing Stocks and 'Amortisation' (Immediate Replacement)
Year Existing Units Ammortisation @ 1% Immediate Housing stock

replacement @
4.3%
2017 185,000 1,850.00 7,955.00 175,195.00
2018 194,360 1,943.60 8,357.49 184,059.03
2019 204,194 2,041.94 8,780.33 193,371.54
2020 214,525 2,145.25 9,224.58 203,155.22
2021 225,379 2,253.79 9,691.30 213,433.91
2022 236,782 2,367.82 10,181.63 224,232.65
2023 248,762 2,487.62 10,696.77 235,577.75
2024 261,348 2,613.48 11,237.98 247,496.87
2025 274,571 2,745.71 11,806.57 260,019.03
2026 288,463 2,884.63 12,403.92 273,174.75
2027 303,058 3,030.58 13,031.50 286,996.09
Step 6: Forecasting the future housing stock from the Average Annual Growth Rate by
implementing the No. of Family per Housing (k=1) as complying to the recent minimum
standards as defined by government or in local policies.
69
Table 7.6: Housing needs to support the population growth
Year Population Housing need Total required @ k=1
2017 2,207,100 538,317.07 538,317.07

2018 2,234,573 545,017.88 545,017.88
2014 2,262,047 551,718.69 551,718.69
2019 2,289,520 558,419.50 558,419.50
2020 2,316,993 565,120.31 565,120.31
2021 2,344,467 571,821.12 571,821.12
2022 2,371,940 578,521.93 578,521.93
2023 2,399,413 585,222.74 585,222.74
2024 2,426,887 591,923.55 591,923.55
2025 2,454,360 598,624.36 598,624.36
2026 2,481,833 605,325.17 605,325.17
2027 2,509,307 612,025.98 612,025.98
Step 7: Total natural replacement
Table 7.7: Total natural replacement (Amortisation @ 1%)
Year Ammortisation @ 1% Total natural replacement, k=1

(1/k * ammortisation)
2017 1,850.00 1,850.00
2018 1,943.60 1,943.60
2019 2,041.94 2,041.94
2020 2,145.25 2,145.25
2021 2,253.79 2,253.79
2022 2,367.82 2,367.82
2023 2,487.62 2,487.62
2024 2,613.48 2,613.48
2025 2,745.71 2,745.71
2026 2,884.63 2,884.63
2027 3,030.58 3,030.58
70
Step 8: Total required immediate replacement
Table 7.8: Total Required Immediate Replacement @ 4.3%)
Year Immediate Total immediate

replacement @ 4.3% replacement, k=1
2017 7,955.00 7,955.00
2018 8,357.49 8,357.49
2019 8,780.33 8,780.33
2020 9,224.58 9,224.58
2021 9,691.30 9,691.30
2022 10,181.63 10,181.63
2023 10,696.77 10,696.77
2024 11,237.98 11,237.98
2025 11,806.57 11,806.57
2026 12,403.92 12,403.92
2027 13,031.50 13,031.50
71
Step 9: Total Unit Needed
Table 7.9: Total Unit Needed
Year Total housing unit Total natural Total immediate Units required
required, x replacement, y replacement, z (x +y + z)
2017 538,317.07 1,850.00 7,955.00 548,122.07
2018 545,017.88 1,943.60 8,357.49 555,318.97
2019 551,718.69 2,041.94 8,780.33 562,540.96
2020 558,419.50 2,145.25 9,224.58 569,789.33
2021 565,120.31 2,253.79 9,691.30 577,065.40
2022 571,821.12 2,367.82 10,181.63 584,370.57
2023 578,521.93 2,487.62 10,696.77 591,706.33
2024 585,222.74 2,613.48 11,237.98 599,074.20
2025 591,923.55 2,745.71 11,806.57 606,475.83
2026 598,624.36 2,884.63 12,403.92 613,912.92
2027 605,325.17 3,030.58 13,031.50 621,387.25
Step 10: Determine the current condition of supply and demand interaction to see whether the
current supply had met the current demand or otherwise
Table 7.10: Demand/Supply Condition
Year Total housing units Housing stocks Surplus or shortage

required
2017 548,122.07 175,195.00 - 372,927.07
2018 555,318.97 184,059.03 - 371,259.94
2019 562,540.96 193,371.54 - 369,169.42
2020 569,789.33 203,155.22 - 366,634.11
2021 577,065.40 213,433.91 - 363,631.49
2022 584,370.57 224,232.65 - 360,137.92
2023 591,706.33 235,577.75 - 356,128.57
2024 599,074.20 247,496.87 - 351,577.34
2025 606,475.83 260,019.03 - 346,456.80
2026 613,912.92 273,174.75 - 340,738.16
2027 621,387.25 286,996.09 - 334,391.16
From the analysis of population growth and housing requirement, it was indicated that
there will be a shortage of housing in the study area consequently for the upcoming 5 years.
This value implied that residential development will have an encouraging demand in the area.
However, the housing requirement is just an indicator to oversee the housing needed by the
population and not considering the affordability of the population in the area to purchase the
offerings. A developer must choose for the target market they want to serve due to limitation
72
of resources. Therefore, to further understand the market segmentation in the area, a take-up
rate analysis of existing, newly completed, under construction or upcoming development is
conducted whereby the figure can be used to develop a comprehensive, valid and successful
marketing strategies and product offerings.
Take-up Rate of Existing Housing in the Area
Table 7.11: Existing Housing Analysis (Take-up rate)
Development Name Latitud 3 Uni Tower (UT) Ryan & Miho

Location Lorong Universiti, Jln Profesor Diraja Ungku Jln Profesor Diraja Ungku
Kuala Lumpur Aziz, Seksyen 11 Aziz, Pjs 13
Distance from subject 0.7 2.0 3.1
property (km)
Type of Development Serviced Condominium Serviced condominium
condominium
Average Built Up Area 853 1302 834
(Sq ft)
Total Unit 96 84 1084
Average Price (RM) 688,000 644,00 738,325
Analysis (RM per sq ft) 806.60 494.60 885.30
Take-up rate 100% 100% 100%
Take-up Rate of Upcoming/ Under Construction/ Newly Completed Residential

Development in the subject site Area
Table 7.12: Existing Housing Analysis (Take-up rate)

Development Location Type No of Selling Price Completion Take-up
Units rate
Trinity Pentamont Mont Kiara Condominium 330 From RM1.2 mil 2022 90%
PR1MA Residensi Brickfields Apartment 920 From RM243,000 2022 85%

Brickfields
Rumawip SkyAwani 90%
3 Residences Setapak Condominium 1,905 From RM300,000 2022
M Vertica (Tower A) Cheras Condominium 808 From RM480,000 2023 95%
Sunway Belfield 89%

Residence (Tower A Jalan Serviced Apartment 880 From RM590,000 2024
& B) Belfield
Jendala Residences @ 35%
KLGCC Resort Bukit Kiara Serviced Apartment 520 From RM1.25 mil 2024
Aetas Damansara @ 30%

Tropicana Golf & Damansara Condominium 226 From RM1.9 mil 2025
Country Resort
Vista Danau Kota Setapak Apartment 910 From RM300,000 2025 45%
Taman 40%
ALAIA Titiwangsa Tiara Serviced Apartment 436 From RM380,000 2025
Titiwangsa
73
The Fiddlewoodz @ 25%

KL Metropolis Jalan Serviced Apartment 679 From RM850,000 2025
Dutamas
Verdura@Bangsar Bukit Condominium 812 From RM835,000 2025 25%
Hill Park Bangsar
In sum, for residential development, the take up rate of higher density of housing were
quite encouraging. Among them, smaller serviced apartment was deemed most preferred by
the user in the area proven by the take-up rate that is relatively high among other type of
development.
7.2 Retails
The property productivity analysis indicated that the subject site has high potential for
retail development due to the large size of site that has room for flexible layout of the retail
lots, good frontage for visibility, good access, topography flexibility and many more attributes
that support the retail development. However, as shown in the figure below, the proximity of
subject site was quite competitive whereby there are existing shopping malls development
within 5km to 10km from subject site. Among the competitors, Mid Valley City is the major
nodes and has the major share which questioned the ability of subject site to sustain its market
share due to the high competition from more established commercial centre.
Figure 7.1: shopping malls Surrounding the Subject Site
Nevertheless, to obtain a more comprehensive justification on the ability of the subject

site to attract customers, the rating matrix analysis was conducted to help quantify the above
questions. Five area was chosen to evaluate and compare with the subject site in terms of the
location ability to attract customers.
74
Figure 7.2: 5 Areas for location rating
Table below presents the rating matrix analysis for location attributes.
Table 7.13: Location – Rating Matrix Analysis
Rating Criteria Subject Area A Area Area Area Area

Site B C D E
Housing Unit (area draw) 2 2 3 2 1 1
Regional (4-mile radius)
Community (2-mile radius)
Neighbourhood (0.5 mile or less
radius)
Proximity to new retail development 1 2 3 2 2 2
Proximity to path of growth 1 1 2 3 2 3
Major roads – Access/Visibility 2 2 3 2 2 1
(existing or upcoming)
Proximity to market (best interceptor 1 2 3 2 2 2
sites)
Size and drawing appeal to anchor 1 2 3 2 2 2
tenant
Effective age of centres 2 2 3 2 2 2
Special amenities features 2 2 2 1 1 1
Totals 12 15 22 16 14 14
% Of Total 12.9% 16.13% 23.7% 17.2% 15.1% 15.1%
The rating matrix indicated that the subject site was relatively less competitive in terms
of location ability to establish and sustain its market share competing with the existing and
upcoming shopping malls.
75
As from the site survey, there is not many competitions on shop lot type of retail.
Surrounding area of subject site has a scattered small business operator which may generate
demand for shop lots. The take up rate of nearest one storey shop lots in the area is encouraging
whereby among all the competitor, majority of the competitors has 100% of take-up rate.
7.3 Hotel
As from the data obtained on survey in Universiti Malaya, the main issues are student
placement in residential college whereby the existing available space is not adequate to fulfil
the number of students intake year by year. Moreover, this will become the issues again as the
mode of learning in universities has been starting to be fully physical and no more remote
learning (online learning). From the site survey surrounding University Malaya, the students
who does not get placement in residential college, would rent a house by sharing with other
tenants to lower the accommodation cost. However, the average rental in the area is relatively
high and the tenancy agreement is not flexible and will incur them more cost for penalty if they
choose to terminate the contract before time. Substantial student population in the area would
generate demand for accommodation. As alternative from renting a home, co-living hotel
provide more convenience and flexible renting for the students.
Drawing from the concept of ‘komune living’ located in Bangsar South, the type of
hotel proposed to be developed on subject site was co-living concept space. The spaces
comprise range of option of private studios, apartment-style rooms and community facilities.
The ‘komune living’ has an encouraging historical record of occupancy whereby the average
occupancy rate throughout the year is at 70% and above. Surprisingly, the target market not
only university students but also office workers nearby the area that prefer short term stay and
the complete facilities provided in complementary with their stay there.
76
Figure 7.3: Facilities provided by ‘komune living’
Additionally, the main attractions of ‘komune living’ which the subject site also has is
the availability and ease of access to the transit hub. The subject site are one of the route for
buses especially that heads to MRT station Phileo Damansara. Living within walking distance
to public transportation has become a trend nowadays due to the increment of parking costs in
offices at the city centre.
7.4 Office
The study area is comprising of quite substantial number of office workers. From
analysis and survey, the nearest office development, Phileo Damansara 2 has relatively
encouraging take-up rate.
Table 7.14: Estimated population in study area
Primary Trade Area Estimated Population

OFFICE WORKERS
Hospital 118,597
Commercial-based residential development 118,597
surrounding the site
Office population in Petaling Jaya and Greater 237,194
Kuala Lumpur
Sub total 474,388
STUDENTS
Universiti Malaya 118,597
Sub total 118,597
RESIDENTS 1,660,358
Sub total 1,660,358
GRAND TOTAL 2,371,940
However, from analysis, it is obtained that in the upcoming immediate 5 years from
now, there is no substantial demand of offices in the area. Therefore, office development can
be considered for future time but not immediately as of the current situation does not
encouraging.
77
SECTION 8: PROPOSED LAND USE MIX
8.1 Planning requirements
As of the information from the administrating local authorities (Kuala Lumpur City
Hall), the planning requirements are as follows:
8.1.1 Serviced Apartment
On the proposed site, the proposed residential development is a free-standing serviced

apartment.
Figure 8.1: Free standing service apartment
Planning Guidelines for serviced apartment
Table 8.1: Guidelines for serviced apartment
78
Guidelines for serviced apartment (contd’)
79
80
81
8.2 Land Use Mix Component
Figure 8.2: Proposed Development Layout
Rationals:
Having regards to the property productivity analysis and the demand-supply

interactions, the development mix as in Table 8.2. The component consists of commercial
development mix whereby it includes a free-standing serviced residence, a co-living hotel and
one storey retail lots. The take up rate for smaller service apartment in the study area are quite
encouraging. The substantial student population will generate demand for the co-living hotel
whereby rental period is flexible with convenience and complete facilities. Simultaneously, the
students also may create demand on serviced apartment, and this will upsurge demand from
investors who going to buy the property for investing it in form of renting out the property. The
excellent level of visibility was a good attribute for the commercial development such as retail
lots in the area whereby most of the retail lots in the subject area have 100% take up rate. Small
business owner surrounding the subject site will increase demand on the shop lots.
82
Development Mix Component

Table 8.2: Development Mix Component
Gross Area Gross Area (%) Unit/Acre No. of units Units (%)
(Acre)
COMMERCIAL DEVELOPMENT (DEVELOPABLE AREA)
Stand Alone Serviced Residence 3.3 6%

Small Unit - 127 31%
Large Unit - 88 22%
Co-living hotel 2.94 6% 150 37%
1-sty Shop lots 4.35 8% 44 11%
Sub total 10.59 20% 409 100%
OTHERS
Amenities 5.3 10%
Open space 5.3 10%
Infrastructure 14.84 28%
Sub total 14.84 28%
UNDEVELOPED AREA
Vacant Land 27.57 52%
Sub total 27.57 52%
GRAND TOTAL 53 100%
83
APPENDIX
84
APPENDIX A: PARTICULARS OF TITLE

LEVEL 10, MENARA MILLENIUM, JALAN
DAMANLELA, BUKIT DAMANSARA, 50490
TITLE SEARCH
KUALA LUMPUR
TEL: 03-95432221 | FAX: 555-321-0106 | EMAIL:
MD_consultancy@gmail.com
85
APPENDIX A: PARTICULARS OF TITLE

TITLE SEARCH
KUALA LUMPUR
TEL: 03-95432221 | FAX: 555-321-0106 | EMAIL:
86
APPENDIX B: LOCATION PLAN

TITLE SEARCH
KUALA LUMPUR
TEL: 03-95432221 | FAX: 555-321-0106 | EMAIL:
87
APPENDIX C: SITE PLAN

TITLE SEARCH
KUALA LUMPUR
TEL: 03-95432221 | FAX: 555-321-0106 | EMAIL:
88
APPENDIX D: SURROUNDING PLAN

TITLE SEARCH
KUALA LUMPUR
TEL: 03-95432221 | FAX: 555-321-0106 | EMAIL:
89
APPENDIX E: ACCESSIBILITY PLAN

TITLE SEARCH
KUALA LUMPUR
TEL: 03-95432221 | FAX: 555-321-0106 | EMAIL:
90
APPENDIX F: CURRENT LAND USE

TITLE SEARCH
KUALA LUMPUR
TEL: 03-95432221 | FAX: 555-321-0106 | EMAIL:
91
APPENDIX G: ZONING PLAN

ZONING PLAN (NOT TO
KUALA LUMPUR
TEL: 03-95432221 | FAX: 555-321-0106 | EMAIL: SCALE)
92

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FACULTY OF BUILT ENVIRONMENT

DEPARTMENT OF REAL ESTATE

BIE3005 REAL ESTATE MARKET RESEARCH

(MIXED DEVELOPMENT ANALYSIS)

Profesor Madya. Dr. Sr Rosli Bin Said

GROUP MEMBERS MATRICS NUMBER

TABLE OF CONTENT .................................................................................................ii

LIST OF TABLES ........................................................................................................ vi

LIST OF FIGURES .....................................................................................................vii

SECTION 1: INTRODUCTION ................................................................................... 1

1.1 TERMS OF REFERENCE............................................................................... 1

1.2 SCOPE OF WORK .......................................................................................... 1

1.3 METHODOLOGY ........................................................................................... 1

1.4 STUDY LIMITATIONS AND DISCLAIMERS ............................................ 2

SECTION 2: REAL ESTATE DETAILS...................................................................... 4

2.1 PARTICULARS OF TITLE ............................................................................ 4

2.2 LOCATION ..................................................................................................... 5

2.3 DESCRIPTION OF PROPERTY .................................................................... 5

2.4 SURROUNDING ............................................................................................. 5

2.5 ACCESSIBILITY ............................................................................................ 5

2.6 CURRENT LAND USE................................................................................... 6

2.7 PLANNING PROVISION (ZONING) ............................................................ 6

SECTION 3: ECONOMIC AND SOCIO-ECONOMIC FACTORS ............................ 7

3.1 THE NATIONAL ECONOMIC ...................................................................... 7

3.1.1 Gross Domestic Product (GDP) ................................................................. 7

3.1.2 Consumer Price Index .............................................................................. 10

3.1.3 Inflation Rate ............................................................................................ 12

3.1.5 Stamp duty exemption.............................................................................. 15

3.2 REVIEW OF NATIONAL DEVELOPMENT PLANS AND POLICIES .... 16

3.2.1 National Development Plans .................................................................... 16

3.2.2 National Policies of Twelfth Plan ............................................................ 17

3.3 PERFORMANCE BY SECTOR ................................................................... 20

3.3.1 OFFICE .................................................................................................... 20

3.3.2 RETAILS ................................................................................................. 23

3.3.3 RESIDENTIAL ........................................................................................ 27

3.4 EMPLOYMENT AND OCCUPANCY RATE ............................................. 35

3.4.1 Employed Persons & Employment-to-Population Ratio, Q1 2019 - Q1

3.4.2 Employed Persons by Status in Employment, Q1 2020 - Q1 2022 ......... 35

3.5 POPULATION ANALYSIS .......................................................................... 37

3.5.1 Growth Rate ............................................................................................. 37

3.5.2 Migration Rates ........................................................................................ 39

3.5.3 Household Size......................................................................................... 41

3.6 INCOME LEVELS ........................................................................................ 43

3.6.1 Household Income Estimates Malaysia, 2020 ......................................... 43

3.7 GUIDELINES ON ACQUISITION OF PROPERTY ................................... 46

3.7.1 Land Selection .......................................................................................... 46

3.7.2 Official Application.................................................................................. 46

3.7.3 Application Process .................................................................................. 47

3.7.4 Land Valuation ......................................................................................... 47

3.7.5 Investigation and Payment of Compensation ........................................... 47

3.7.6 Reference to Court ................................................................................... 48

3.8 INCENTIVES ................................................................................................ 48

SECTION 4: INFRASTRUCTURE ............................................................................ 49

4.1 Light Rail Transit (LRT) ................................................................................ 49

4.2 Mass Rapid Transit (MRT) ............................................................................ 49

4.3 Bus Station ..................................................................................................... 50

4.4 Highways and Roads ...................................................................................... 50

4.5 Future projects ................................................................................................ 51

SECTION 5: REAL ESTATE MARKET ................................................................... 53

5.1 Overview of Malaysian Real Estate Market .................................................. 54

5.2 Performance of the Real Estate Market.......................................................... 54

5.2.1 Performance of the Real Estate Market in Kuala Lumpur ....................... 54